Most start-up owners struggle to organize invoices. They want timely payment but fail to save invoices. It can lead to payment disputes in the future. Not to forget the late payment issues you have to deal with at a later stage.
Even if you are an experienced business owner, you should refrain from delaying things concerning the payment. Your business credit report may get impacted if you don’t follow standard business practices.
Remember the time you had to sit with a client to sort out payment issues? Probably, you did not organize your invoices. You may also have forgotten to save payment records in the past. It may have given you a hard time negotiating the payment terms. Fret not! Every problem has a solution.
Here’re a few invoicing mistakes you can avoid in 2021. Make this year a successful one for your business by following these tips.
Forgot to invoice
You may become excited when you see a deal coming through sooner than expected. We understand your excitement, but you need to invoice so you can get paid. There has to be a digital receiving upon which you can ask to settle the payment. It’s better to avoid this mistake as it can create chaos and confusion for both parties.
Delaying invoicing
If you’ve got a habit of delaying things, including invoices, you may need to catch hold of things before they become a liability. Delaying invoice is not a good idea, especially if you suspect the client to be lazy when making payments. Do not delay invoicing and billing material and payment records. The sooner, the better!
Having vague terms and conditions
Your invoices must have clear terms and conditions. If you don’t have that, you may find yourself juggling between different clients asking them for payments. Stating clear terms in your invoices is as crucial as generating an invoice in the first place. It helps you recover money from a payment defaulter faster.
Not checking invoices before sending them
Unless you are a human-computer, you can’t rely on your memory to remember or detail out things accurately. Use the calculator, work on the Excel sheet, and tally the numbers. Before sending an invoice to a client, you must double or triple-check it for errors and discrepancies. You can use various software to help you out. This way, you can fasten up your payment settlement process.
Not saving invoices
It’s not 2000, where you can rely on the print copies of an invoice: one for the client and the other for your record. Nowadays, it’s necessary to save invoices digitally. If you have a habit of printing documents, it’s fine! But you can store invoices on your computer for safety purposes. Also, make sure to have a backup of those files for emergencies.
You can avoid these mistakes by organizing your desk. It’s about the money, so you should not take it lightly. Invoicing doesn’t take time or money. Be proactive in saving and organizing your business invoices so you can relax and concentrate on other important tasks.
