7 Common Invoicing Mistakes
Mistakes can happen with invoicing that cause payment delays, miscommunication with clients or difficulty collecting payments. It pays to review your systems and identify potential invoicing pitfalls.
When you complete a job or fill an order, there’s often a sense of relief that the hard work is done and all you have to do is send out an invoice. However, mistakes can happen with invoicing that cause payment delays, miscommunication with clients or difficulty collecting payments. Reviewing your invoicing process to identify potential pitfalls can help your organization get paid faster and maintain good client relationships.
Avoid making these seven common mistakes with invoicing:
- Not sending invoices promptly. When you have to generate invoices manually, it may not get done right away. Automating your process for invoicing can help speed the process so your invoices are sent as soon as possible. Read more about increasing efficiency with automation.
- Not specifying a due date. Leaving the due date blank on an invoice is a mistake that can lead to payment delays. Don’t assume that clients will pay in 30 or 60 days unless you specify a deadline.
- Incorrect information on invoices. Using a manual system for invoicing can lead to grammatical errors or mistakes with itemizing and totaling the amounts due on the invoice.
- Unclear options for making payments. Invoices should clearly indicate how to pay by check, electronic transfer, credit card or another method. Accepting payments online can increase customer convenience and reduce late payments. Providing multiple payment options and easy instructions for making payments can help you get paid faster.
- Sending invoices to the wrong person. When invoices go to the wrong contact at a company, they can get lost for days or weeks. Before sending an invoice, it’s wise to confirm who the billing contact is and double-check that you have the right contact information.
- Not using secure delivery methods. It’s important to have a secure method for sending and receiving communications about payments with clients. Consistency is key, because that helps clients and vendors recognize the difference between legitimate invoices from your organization and fraudulent requests for payment from cybercriminals. Read more about ways to outsmart invoice fraud.
- Not following up. When you’re juggling many responsibilities, following up on invoices may not be on the top of your to-do list. It helps to set up automatic reminders to follow up with clients on payments. Reaching out personally can make a difference in making sure your invoice gets paid. Be proactive about staying in touch with clients to avoid collections delays.
We Can Help
Having an efficient and secure process for invoicing is the key to getting paid.
At Amegy Bank, we offer an all-in-one cloud-based receivables management solution for e-invoicing and payments. Learn more about how we can help you streamline your processes for accounts receivable.