Common invoicing mistakes (9) | Saldoinvoice.com

Common Invoicing Mistakes

Errors in the documentation can have serious consequences. In case of small businesses, it primarily concerns timely payment. To get compensated for the work performed within the agreed time frame, try to avoid these invoice errors, often made by inexperienced entrepreneurs, very helpful will be a basic invoice template, because all fields are already filled, you only have to add your data.

How to Pay Your Invoice

Not to Set Payment Terms

Payment terms are an essential part of any bill. By clearly describing deadlines, you express your expectations and also inform a client during what period they need to transfer money to you. Moreover, payment timeframe allows you to track the fulfillment of obligations by the second party and identify debtors.

How to write payment terms on an invoice? By agreement with a customer, choose any period suitable for both: Net 7, Net 30, or upon receipt. You can also specify the due date, that is, a specific day by which the money should be credited to your account. Setting clear deadlines helps you avoid the need for chasing unpaid invoices.

Not to Track Unpaid Invoices

Since an invoice is a formal request for compensation for work performed, you should track the receipt of finance. Modern software for generating invoices simplifies this process by providing convenient reports for specific periods. If an orderer still does not pay by the agreed day, you may apply penalties to them and charge late fees, which should also be discussed in advance. Carefully monitor the status of your bills as you are interested in getting paid on time.

Not to Include Due Date on Invoice

Accurate due date is another important element of all independent contractor invoice samples. It increases the likelihood that a customer will pay on schedule. In case you or your orderer are just starting in business, you may not be familiar with the commercial vocabulary and don’t know phrases such as “EOM,” “MFI,” or “Net …” Then simply indicate a specific day, to which they should provide compensation for the work performed. If you are unsure which deadline to select, find the typical invoice due date example that you can find on the Internet.

How to invoice someone?

How to Correct an Invoice

Despite systems that automatically insert some data into templates, some of the information still has to be entered manually. At this stage of preparing invoices for billing, mistakes can creep in. Depending on what kind of data was entered incorrectly, there may be different ways to solve the problem. However, as a rule, the most common mistake is inaccuracies in the lists of goods and services provided, which leads to an incorrect total amount. A credit memo is used to fix such situations. It “levels out” your client’s balance sheet and helps prevent invoice discrepancies.

Invoice as a Contractor: Tips and Tricks

Incorrect Invoice Number

Disorder in the numbering of papers might lead to inaccuracies in all other documentation, including tax forms. Try to adhere to the same numbering system for all files you issue to avoid it. If you made a mechanical mistake when creating a new doc and have already sent it to a recipient, you need to submit a cancellation note after that. It should have its own ID, and it should also contain all the information regarding the file it’s canceling. It’s essential to do it in time so that a customer does not make a payment mistake in their turn.

Fill in an Invoice With Errors

Any errors in documents, especially systematic ones, show your incompetence and carelessness and negatively affect your reputation. Moreover, even a small billing discrepancy can lead to inaccuracies in further documents and proceedings with clients. It will result in wasted time and money. It is important to notice a typo on time and take appropriate measures to correct it. If you issue papers electronically, be sure to preview them before sending them to the orderer. That is why it’s better not to issue bills manually but opt ​​for specialized services like Invoice Maker by Saldo Apps.

Elizabeth Kvasha
Content Manager, who creates the articles and visually transforms the websites of SaldoApps production.
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