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    The Most Common Invoicing Problems For Small Businesses


    Invoicing has become a crucial necessity for not just small businesses but also large ones. The routine task of supplying products or services can accumulate an incredible backlog of invoices. 

    As businesses start to secure scalability, invoicing management can become even more complicated. This can lead to some common invoicing issues. With a degree of shrewdness and control, these issues can easily be fixed and avoided. 

    Here’s a list of common invoicing problems and how you can avoid them.

    Wrong Contact Info

    This is the preliminary step in sending a bill. Before delivering one, you must double-check the company name, personal info, email address, and other relevant information. Unfortunately, sending a statement purported for client A to client B mistakenly is an error more common than you think. 

    Under all circumstances, make sure that you dispatch the statement not only to the right company but also to the relevant department.

    Invoicing Errors

    Procrastination is a common invoicing mistake. There’s practically no reason you should ever waste time over irrelevant details. You have the legitimate right to request payment for any service or good you may have supplied a client with. 

    Delaying confirmation of your bill’s receipt from your client is yet another kind of procrastination. After sending your invoice, you must immediately follow up with a confirmation of your bill’s receipt.

    Not Adhering To Basic Invoicing Conventions

    There’s a basic set of conventions that all invoices must adhere to. Different businesses have different invoicing templates and these can range in the complexity of information outlined. At the very least, your statement should neatly highlight the names and contacts of both the sender and the recipient.

    It should also share the amount due, the date on which it was created, services or goods supplied, invoice number, and payment instructions. It’s important to highlight each of the information in a way that’s easy to comprehend.

    Errors Within The Invoice

    Spelling and numerical errors can wreak havoc, or at the least, create immense anxiety for both parties involved. Not only must you double-check for all numerical and spelling errors, but you should also number each invoice separately. This is important for both senders and receivers when sorting statements by category. The bill’s number also comes in handy as a future reference in case of a possible dispute.

    Not Following Up On Payments

    Collecting payments from your clients can be a tad bit more complicated than you’d like to think. It’s not simply a matter of selling your services. You must be as efficient in collecting payments for your services as you’re in performing them. This is especially important knowing that, on average, about 20% of a business’s invoices aren’t paid within the time. You must thoroughly follow up on the bills you dispatch.

    It’s more than permissible to forward a gentle reminder to your clients as you near the payment deadline. Your tone and manner must be deferential and courteous. Remember, your follow up should be a reminder for business owners and not an accusation. 

    Amidst a torrent of day-to-day business-related chores, it’s easy to overlook pending deadlines. Therefore, be considerate while following-up.

    Hidden Costs

    Adding hidden costs, or costs that you and your client simply didn’t agree on, can backfire. You must put yourself in the recipient’s shoes before considering such a practice. Including a hidden cost or overcharging someone is distasteful and dishonest. 

    Before drawing an agreement, any additional fee must be clearly stipulated and agreed upon by both parties. Doing otherwise will leave a bad impression on your clients and make them wary of any future partnerships. 

    Losing Invoices

    Losing invoices has been reported as a common issue for businesses. Sticking to the basics should keep you clear of these encumbrances. Quickly create and dispatch your invoice and then follow up with a confirmation call.

    If your client happens to lose an invoice and doesn’t report it in time, your invoicing reminder mail should solve this problem. Since reminder calls take place sometime before the due date, your invoice can still be paid on time.

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    As a service provider, you already have your hands full with the everyday essentials of a smooth business operation.

    Mitigating customer non-payment can keep your business machinery properly organized. While the errors listed above are common, they’re also easily avoidable so long as you decide to stick to the basic invoicing conventions.