The late payment epidemic is not going anywhere anytime soon and making mistakes on invoices will only delay any anticipated payments. This blog will outline five common invoicing mistakes that you should avoid.
1. Not sending the invoice straight away
This is the most common mistake but it really depends on how organised you or your credit controllers are. As soon as you finish a business transaction with a client you should send them an invoice, if you delay it, you may forget to send the invoice. Delaying this process will not only ensure you receive your payment late, but also put your payment at the back of the client’s priority list.
2. Sending invoices to the wrong person
When you have huge caseloads it can be easy to mix up client contact information. It’s important to proof read any form of communication before sending them out, to ensure there is no mistake or violation of privacy. Not only can you send an invoice to a client who no longer exists, but you could also compromise another client’s personal data which can have harsh consequences. It’s also important to ensure you are sending the invoice to the most relevant person within the company.
3. Not offering various payment methods
Making the payment process convenient to clients can lessen the time taken to receive a payment. If you haven’t already, consider multiple payment methods for customers to pay their invoices and make sure these are clearly stated on your invoices. How do you receive payment? Consider online payment and electronic transfers which are faster and cheaper to administer, as well as traditional methods such as cheque payments etc.
4. Missing important details
When writing up an invoice, ensure you have a list of important information to include and as you write make sure to tick them off. It’s really important to ensure you don’t get your numbers wrong. Ensure that the correct amount owed is stated, including any additional charges. Another important detail which is often left out are the terms of payment. Ensure you include all the legal terms about privacy, late payments fees etc. Along with your invoice, you must make it clear when the payment is to be expected.
5. Not following up
Once you’ve sent the invoice you need to have a structured communication process which follows. Try following up with a call or an email to check that they have received the invoice and confirm their payment plan. Having a clear collections strategy will ensure that your invoice does not get lost, or fall through the cracks.
Any mistakes can lead to disputes, which will delay payments, so never send out an invoice without proof reading it. Debt recovery is a hefty task to go through alone. If you do not have an in-house team, why don’t you outsource this service from us? J&P Credit Solutions have been collecting debts for more than 125 years.
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