The invoice also affects the goodwill of the business. And There are huge Chances that you’re making at least one of the invoicing mistakes. Worry Not! Once you’re aware of them, they’re easy to avoid or fix.
In order to get paid it’s important to Send an invoice to your customers. No doubt, you are known to this. But, often in hurry to send those invoices, you may make some common invoicing mistakes that lead to delays in getting paid. No problem! here are some common invoicing mistakes, that should be avoided while making or sending an invoice.
Some Common Invoicing Mistakes
1. Not sending the invoice at right time:
Submit your invoice to the client immediately after half work is done. And request the balance upon submission of work.
In other cases, never wait for your customers to ask for the invoice; they’re busy and often chances that they’ll forget to remind you. Responsibility is yours, that you remind them of invoice. The sooner you send that invoice, the faster you’ll get paid. So don’t wait for month end. Act smartly, once your work is complete!
2. Failing to Specify Due Date for Payment:
Many business owners make the mistake of sending “open invoices” to clients and include indefinite, confusing payment terms.
Like “Upon receipt,” tells the client that they need to pay the invoice as soon as possible. But, “as soon as possible” is open to interpretation.
“Net 60,” is confusing for those who aren’t business savvy.
“Within N number of days of work completion,” can also be understood differently among clients.
Always specify the exact payment day in order to avoid every confusion. Like, want payment within a week and you submit your invoice on the 1st of September, set the payment date for the 8th of September. Use simple terms that a beginner also understands that.
3. Sending The Invoice to the Wrong Person:
In hurry, there is a huge chance that invoice may send to a wrong person. And you realized the same when even after due date you have not received the payment. You follow up, and the client responds by saying they’re not the right contact and then you need to send the invoice to person X. Not only you wasted days, but also there is wastage of resources.
So, cross- check the contact before sending the Invoice, for efficient working.
4. Not Showing Courtesy In Your Invoice:
An Invoice represents the whole organization. Not showing courtesy in invoice may bring down the goodwill of the business. Many, however, fail to include phrases like “Thank you for your business,” or “Please pay by [insert date].”
5. Not Itemizing Services:
While some clients don’t need detailed and itemized service breakdowns, others do. For many customers, it’s a matter of procedure and helps when tracking, recording, and reporting expenses.
Making it a habit of providing itemized service breakdowns, regardless of who the client is, is a foolproof way to avoid receiving emails from clients who want this.
6. Not Restating Terms:
Before starting any project, it’s important to specify terms and provide a detailed breakdown of services you provided with their costings.
It’s also crucial to tell all terms and how you work when you invoice. So that you can save yourself from any type of creep and bullshit.
After you’ve invoiced, Customers can sometimes become creepy and start making more demands. They requesting extra revisions and changes. Stating all terms in advance helps you in this kind of situations.
7. Not Following Up:
Even after receiving an invoice, customers forget to pay as they are busy and others wait until you badger them. Following up solves problems of late payment.
Always take follow-ups, so that customers do not forget to pay, and business works smoothly.
8. Not Making it Easy to Pay:
Even after receiving an invoice, sometimes a problem arises that customers don’t know how to pay? So, there is need to tell the customers various modes to pay, at the time of sending the invoice. Tell him about both online and offline methods.
9. Including Surprise Fees:
Tell the customers before invoicing, if you add on something in costing in case you work extra. As none like the unexpected extra coting, customer is also among them.
10. Sending an Invoice That Includes Errors:
Never send the invoice having any of mistakes like wrong data, wrong invoice number, spelling mistakes, wrong info of product or client. This one is amongst the most common invoicing Mistakes
While creating invoices in excel these problems occur often. The solution is to proofread your invoices before sending them to prevent constant back and forth emails. Alternatively, upgrade to an automated online invoicing system.
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