Are you a small business owner? As the owner of a small business, you should have two goals. You need to provide excellent customer service and focus on succeeding.
Most small business owners focus on their profit. In reality, their focus should be on cash flow. It’s important to have a positive cash flow.
It can be achieved through invoicing. This is a task that deserves attention. You must avoid common invoice mistakes that can hurt your business.
Read on to learn about 6 common invoice mistakes you must avoid.
1. Not Sending Invoices Out on Time
Sending out invoices on time is a must. Don’t let it slip your mind. The longer it takes to send invoices out, the longer you’ll wait to receive your payment.
Invoicing should be a priority. Don’t wait on your clients to remind you to send their invoices out. It’s a good idea to schedule a time to focus on creating and sending invoices out.
2. Incorrect Details on the Invoice
One of the most common invoice mistakes is putting incorrect details. Review invoices before you send them out. Failure to include the right information can lead to confusion and delays.
The details for invoices should include the customer’s name and payment due date. Use the term “Upon Receipt” to tell the client the invoice must be paid as soon as possible. If you aren’t sure about who handles invoicing, you should contact your client to verify the name.
3. Not Itemizing Services
You must itemize the list of services rendered. It’s a matter of procedure for most clients. This way, there’s no confusion or concerns about overcharging clients.
Itemizing helps you track, record, and report expenses. Come tax season, this will save you a lot of trouble, so save the invoices.
4. Not Following up on Invoices
You sent out an invoice three weeks ago. Do you follow up on it? Of course, you follow up on.
One of the worst invoicing mistakes is not following up on late payers. Clients can forget to pay. It can happen, but you have a business to keep running, so you need to get paid.
If this happens, you can send a friendly email to the client to remind them to pay. Do you have a major problem with late payers? If you do, you should consider establishing a late fee policy.
5. No Clear Invoice Terms and Conditions
On your invoices, you must have clear terms and conditions. They should include details about your products and services. Spell out your late fee policy and pricing.
6. No Invoicing System in Place
Not having an invoicing system in place is a bad business practice. If you don’t have one, you’re setting yourself up for invoicing failure.
Consider using a free invoice generator. This is an invoicing system that’ll help you create and send invoices.
Avoid Making These Six Common Invoice Mistakes
To have cash flowing in your business, you must focus on invoicing. There are common invoice mistakes to avoid. If you don’t avoid these 6 common invoice mistakes, you can hurt your small business.
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