If you’re a small business owner, you know that invoicing can be a bit of a pain. But if you make even one simple mistake on your invoices, it could cost you money and customers. Here are 15 mistakes to avoid when invoicing your small business.
Not including necessary data– Whether your invoice is paper-based or sent electronically, make sure that it includes all of the necessary data. This includes your company name, contact information, and invoice number.
Not including invoice details – Along with the basics mentioned above, be sure to include invoice details like a description of the goods or services being invoiced for, as well as any delivery or shipping charges.
Sending late invoices – If you need to send out an invoice, don’t wait too long before sending it out. Sending late invoices can cause customers to lose trust in you and delay payment.
Omitting tax information – Whenever applicable, always include tax information on your invoices so that there are no surprises for your customers. This includes the rate and amount of taxes, as well as any exceptions to these rates (such as being tax-exempt).
Failing to invoice promptly – If you provide goods or services on credit terms, always invoice promptly so that there is no delay in receiving payment. Customers who wait too long may forget about their invoices or even change suppliers.
Miscalculating discounts – On invoices for large orders, be sure to calculate all potential discounts properly so that you can ensure accurate billing. You don’t want to miss out on a discount by miscalculating it!
Including hidden fees or charges – When you are calculating invoice totals, be sure to include all possible costs and fees upfront so that your invoice is easy to understand. This includes setting any early payment discounts or credit card processing fees, as well as shipping and handling charges.
Not providing invoice templates – If you send out a lot of invoices, it’s always helpful to have invoice templates available so that you can easily create new invoices with just a few clicks. Look for an https://invoice-maker.org invoice maker that allows you to do this easily and efficiently.
Not offering online payments – In today’s fast-paced world, most people expect to be able to pay their bills online. Offering online invoice payments can help make your customers’ lives easier while also saving time and money on paper checks.
Letting your invoice design get stale – Your invoice might not be the first thing your customers see when they open an invoice, but that doesn’t mean it shouldn’t be visually appealing and professional-looking. Be sure to regularly update your invoice designs so that you always present a polished image to your customers.
Not providing invoice receipts – While you generally should invoice your customers immediately after providing goods or services, there may be times when this is not possible. In these cases, always provide invoice receipts as soon as possible so that customers have a record of their invoice order.
Sending oversized invoices – When sending out large invoices (for instance, for orders over $1,000), ensure that they are optimized to fit on one page. This helps make them easier to read and reduces the risk that a customer may lose your invoice.
Including invoice payment due dates – When invoicing customers, always include invoice payment due dates so that they know how long they have to pay their invoice and when interest will begin accruing if they are late with payments.
Mistaking invoice data for marketing materials – Although invoice designs can be visually appealing, it’s important not to get carried away by making them too busy or including too much information. Remember that invoice content should only be related to providing billing details, not pitching products or promoting your company.
Not customizing invoice formats for different customers – Depending on the type of invoice you send out (such as retail, wholesale, or construction), make sure that invoice formats are customized to the needs of that customer. This includes invoice language, invoice headings, invoice payment terms, and more.
Not including invoice responses – When you send out invoices to your customers, always include invoicing response forms so that they can easily respond to invoice inquiries. This helps you save time on chasing down late payments and also allows you to build stronger relationships with your customers.
Not providing invoice references – Whenever possible, always include invoice references on each invoice so that customers can easily refer back to them when making a payment or inquiry. Having this information readily available helps streamline communications and ensures accuracy in billing.
Ignoring invoice due date reminders – Even if you have provided all needed invoice details and invoice payment due dates, it’s always a good idea to send invoice due date reminders so that customers stay on top of their payments and aren’t surprised by last-minute invoice fees.
Not keeping invoice records – Finally, make sure that you are maintaining invoice records so that you can easily track overdue invoices, outstanding invoice balances, invoice due dates, and other important data. You never know when an invoice might need to be referenced or if a customer may call with questions about your invoice. By having all relevant invoice information readily accessible at all times, you can reduce the risk of any problems down the road.
If you want to make invoice payments easier for your customers, consider using a service like voice payments. With this simple invoice tool, your customers can easily submit invoice payments with just their voice commands, saving time and hassle on paper checks and other payment methods. Plus, it’s easy to set up and use, so there’s no need to worry about complicated invoice processes or software requirements. So why wait? Sign up for a voice payments invoice account today and start streamlining invoice payments in your small business!