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6 Common Invoicing Mistakes and How to Avoid Them

Invoicing is an integral part of running your business. Here are 6 common mistakes and how you can avoid them.

Invoicing is a task that most business write off as being simple. What could possibly happen? You send off an invoice and it gets paid right?

If you’re one of the lucky ones, yes invoicing can definitely be a breeze. However many business owners struggle with countless payment delays along with other issues.

Payment delays can be caused by a variety of reasons. Sometimes they fall on the client. That said it often times falls on the business owner caused by various invoicing mistakes.

These mistakes can be as small as forgetting a date or as bad as leaving them without an option to pay.

That said, here are five common invoicing mistakes and how you can fix them.

1. Miscalculations

If you’re invoicing for single items or something small this typically isn’t an issue. However some invoices can contain over a hundred line items that need to be paid for. This often leads to small miscalculations which can throw off the entire invoice.

Another common miscalculation is taxes and fees. If you forget to include taxes or fees in your invoice you may have to eat that cost if your client completes the payment.

2. Lazy Itemizing

When it comes to completing a payment your client will want to see each and every line item. To keep things simpler business owners often clump like tasks or items into the same line.

While it may save time for you it leaves it up to the client to determine what exactly they’re paying for. Often times the client will send the invoice back to be itemized precisely.

3. Forgetting to State Payment Terms

When it comes to collecting payment you want to make sure there is absolutely no room for confusion. When drafting an invoice it’s imperative to set crystal clear invoice and payment terms.

If the terms are clear and on the actual invoice the client will have little room to argue with any policies you set.

4. Setting The Wrong Date

One of the most common invoicing mistakes is setting the wrong dates. There are two dates you should always set on an invoice. The issue date and the due date.

Pro tip: When setting the due date and or payment terms you should always use an exact date rather than ‘net 15’ or ‘in 15 days’. This way your client will know exactly when it’s due in case you forget to include the issue date.

5. Unbranded Invoices

As a business owner you want to take every opportunity you can to brand your business. That said, invoices should definitely be an area where you can look to push your brand.

Whether it’s a fully custom design or simply including a logo, every little bit counts. In addition a branded invoice adds another level of professionalism which will make your clients respect doing business with you.

6. No Follow Up

If your invoice goes past due you should probably just wait until your client notices right? Big no.

As you send out your invoices you need to keep careful track of which invoices are sent and when. As soon as they go a few days past due you need to follow up with clients immediately. You should never assume they’ll get around to it.

The Solution

Although there are many mistakes to be made, there is one solution that can fix them all. If you want to solve all of your invoicing problems you should use a cloud accounting solution. These platforms offer kick-ass features like online invoicing and automated expense management.

On the invoicing side you can customize invoices, calculate totals, set terms, automated follow-ups and much more. If you’ve made some of the mistakes above then I highly recommend using a digital solution so you can collect more of what you’re owed!

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