Invoicing customers is an important part of the process of running your business, and as such it is crucial to make sure that you are getting every penny possible out of them. With the amount of time that invoices take to fill out and send out these days, this process can be quite tedious and can often lead to mistakes. This blog post highlights some areas that are easy for invoice-related errors to occur, along with how you can avoid those mistakes.
There are a few common invoice mistakes that people make, and knowing what to check can help prevent costly mistakes. Here are five of the most common invoice mistakes:
1. Failing to include all required information on the invoice. Make sure to include your company name, contact information, product information, and delivery information. If you sell services, make sure to list the services you offer and the price for each service.
2. Failing to clearly state what the invoice is for. Make sure your invoice includes a description of what the customer is receiving and how much it costs. For example, if you are selling software, include a detailed description of what the software does and how much it will cost.
3. Failing to specify a payment method on the invoice. It’s important to specify which payment method you want the customer to use on the invoice. This will help ensure that you receive payment from the customer.
One way to keep from making mistakes when sending out invoices is to check the following:
-Make sure each line item on the invoice is correct and matches what was actually purchased.
-Verify that the amounts being billed are reasonable and within the company’s budget.
-Ensure all taxes, fees, and other charges have been included.
-Check for spelling and grammar errors.
-Check for accuracy of pricing information.
Invoice mistakes can significantly impact your business’ cash flow, so it’s important to avoid them at all costs. Here are five invoice mistakes you should watch for:
Once you master invoices, all that is left is to get paid. If you need the funds now, invoice factoring is one method to increase your working capital. The graphic below details other ways and uses of working capital financing.
Infographic provided by Seacoast Business Funding – invoice factoring services
1. Failing to include a company logo or contact information on your invoices. This is a common omission that can lead to payment delays and missed opportunities. Make sure to include your company name, logo, and/or contact information on each invoice for easy identification and tracking.
2. Sending invoices late. If you need funds from your clients as soon as possible, make sure to send your invoices as soon as possible after receiving the contract or purchase order. Delays in processing can lead to late payments and lost revenue.
3. Sending invoices that are too high or low in price. When pricing your products or services, make sure not to overprice or underprice your products relative to the competition. This will lead to missed opportunities and unhappy customers.
You can use this invoice template and make sure none of the mistakes highlighted happen to you.