Invoicing is an integral part of any business growth. While it can be a tedious and boring task, it ensures your business has enough cash flow to survive.
Many companies pay little attention to invoicing which in turn, stagnates their business. Invoicing is a bridge that leads you to your money and ensures your business stays healthy. That’s why we’ll be revealing common invoicing mistakes and how you can avoid them.
Not sending out on time
Due to busy schedules and increasing size, businesses tend to send an invoice late or worse, never at all. And if you don’t send an invoice out early, you don’t get paid on time. This can plague your business causing it to suffer and slow down.
Failing to backup
Like every other vital document sitting in your office, your invoice should be probably backed up. Computers aren’t necessarily perfect machines and can crash at any point. That’s why it’s important to back up your invoice file in a cloud.
No payment method
When it comes to working with a client or customer, it’s important to make your payment process as easy and swift as possible. Not adding a payment method makes it difficult for you to get paid on time. Your client gets confused and puts it off to a later date.
You want to provide your clients with necessary information so they grab who the invoice is coming from and process it quickly. Always make sure your business details are accurate and you’re not leaving out something important.
Poor description of product or service
Generally, this process is referred to as itemization. When you bill a client, your invoice has to be detailed. For example, it should include hourly rate, what you’re billing for etc. If your client requires additional details, make sure to include that as well. Proper itemization and delivery gives you a professional appearance.
Sending an invoice to the wrong person
Sending an invoice to the wrong person’s address is a common situation business owners find themselves in. By the time they realize the error, precious time is lost. Before hitting the send button, double-check to ensure the invoice is heading to the right client.
Absence of late fees
In order to prevent clients from paying late, you can add a fee for late payments. This way, the client is compelled to pay early.
A poorly edited or formatted invoice can cause some problems for you down the line. Not only does it make you appear sloppy, it can create confusion for the client. This causes the client to ignore and postpone your payment.