7 Common Invoice & Statement Mistakes
An invoice is a document sent to a buyer that states the amount and type of service rendered by a seller. Typically, it may include the period of time that a buyer has to send payment to the seller of the goods and/ or services they have purchased. An invoice is the bedrock of the sales process. A properly created invoice is a legal document that creates a binding agreement between the seller and buyer, ironically, many businesses have not mastered the art of creating standard invoices. Below are some common mistakes businesses make when drafting an invoice.
1. LACK OF VERSATILITY
A good invoice should be flexible and not rigid. It should offer various forms of payment so that the client can choose which best suits his or her business. Ease of carrying out transactions is key to more patronage and income. By offering a range of payment methods for clients to pay their invoices, the collection process will be easier for both the buyer and the seller.
2. NOT INCLUDING A STANDARD LOGO
A logo is a design that is exclusively yours, by including a logo, you are establishing your business as a brand. This would make it look professional and instil confidence in a client, which would make them comfortable to transact business with you.
3. IMPROPER DICTION/ POOR SPELLINGS
For a formal and important document like an invoice, it is important to spell words correctly, poorly spelled words and an inability to properly describe your products and services, could leave a negative impression o the client. Poor formats and failure to change the currency to that which is acceptable in your location may lead to delay in payments and unnecessary stress. So, to avoid this, you must cross check the invoice draft, before sending it out to prevent looking unprofessional and hinder your chances of getting paid, you must make sure your invoice content is perfect.
4. FAILURE TO ITEMIZE CONTENT
Whether you are billing for a product or service, it is necessary that you give a detailed description of every line item fee, to foster trust and eliminate confusion from the client. It also ensures that you are paid promptly for your goods and services as the customer can easily decode the invoice content.
5. IGNORING PAST DUE INVOICES
Unfortunately, not all invoices get attended to, some clients don’t pay accordingly and it is the task of the seller to follow up on them by sending reminders and to make some efforts to reach out to them so that payments can be made promptly. Cash flow is as necessary as increased sales. Lack of cash can halt a business venture. You need to make sure that clients complete the payment process, at least within 30 days of receiving the invoice.
6. EXCLUDING TERMS IN YOUR INVOICE
This section should always feature in you invoice draft, as it serves as a reminder to your clients that it is not only a legal document. It should be used to remind clients about payments, refunds or any other legal information.
7. DELAY IN SENDING INVOICE
Immediately a project is completed, or goods are delivered, you should endeavor to send the invoice to attract prompt payments from clients.
Finally, nothing beats a professionally drafted invoice; we can always seek help from professionals to help with drafting a standard invoice content for the well-being of our business.
