Invoicing mistakes are one of the most common yet avoidable ways to slow down cash flow. We’ve collated the 9 most common invoicing mistakes.
- Automate your invoicing
There is a wide range of ways to automate your invoicing. The easiest way is to use an invoicing solution, we’d recommend invoice24. By using an invoice solution to automate either parts or all of the invoicing process, you remove the chance for errors to occur. They also provide an easy way to view all of your invoices in one place and keep track of which have been paid.
- Provide clear payment terms
Default payment terms for invoices include that payments must be sent within 30 days of receiving the invoice. You can customise this to suit your needs, by shortening or increasing the agreed term. You might also add extras, such as discounts for paying early. All of this must be stated clearly on the invoice for it to be applicable.
- Give all necessary information
Some details on invoices might seem like they don’t need to be said and could be discluded, but this is not the case. The invoice is the receipt of the transaction and should have all information included. Discluding information isn’t just confusing for the customer, it can be illegal. Make sure you know the legal requirements on invoices before you make any.
- Use invoices to promote your brand
Invoicing properly is a statement of how professional a business is. Use professional-looking templates and updated formats to present your business professionally. Adding your logo is essential to creating brand awareness. Use the opportunity to turn your invoices into a marketing opportunity to generate more sales.
- Send invoices immediately on completion
Always ensure that you invoice the moment you complete the work. The later you wait to make the invoice, the harder it is to keep track of, and the later the customer will pay you.
- Always double-check that the correct person receives it
It might sound trivial, but double-checking the recipient can save you some common headaches. Everybody makes mistakes, and there’s nothing worse than having sent off your invoice, only to realise it’s gone to the wrong person. Always double-check before sending.
- Be sure to follow up
Ensure that following up after invoicing is part of your regular routine. It’s professional and provides opportunities for more work as well as the possibility for early payment. Not following up can do the inverse, and leave your client forgetting the invoice.
- Make paying you simple
Give clear and easy ways to send you the payment. Whether it be by BACs or through a cheque, discuss the method beforehand and provide the best way for both of you. Some payment methods will require additional information on the invoice, e.g. bank details. Invoicing apps like invoice24 make it easy to put all the necessary details on your invoices, for any payment method.
- Clearly state the intention of every fee
Make sure that every fee within the invoice, such as VAT, has a clear indication of its purpose. Without stating what they are for, they can look like surprise payments, and appear as an extra fee for no reason. This can very quickly break down business relationships and should be avoided. Remember: clarity is key when it comes to invoices.
Double-checking invoices might seem like a waste of time, but overlooking simple mistakes isn’t worth it. You lose valuable time and opportunities by foregoing the small things. Next time you invoice, use our How To Write An Invoice UK blog as a checklist and you might find yourself getting paid sooner.