Invoicing is an inevitable part of every business. Getting organized and staying on track can help avoid some of the most common invoicing problems. An invoice serves as proof of a purchase made between you (as a business entity) and your customer. It serves as a legal document that needs to include a number of specific details to ensure its validity. Below you will find the top invoicing problems & their fixes to ensure your business finances are in good shape.
Top Invoicing Problems & Their Fixes
Proper invoicing is a foundational component of every business. Consider the following solutions to the top invoicing problems.
Incomplete or Missing Information:
Missing information can lead to a number of invoicing problems. Accurate invoices are necessary to ensure you are paid on time without issue. Information such as the due date, amount due, late payment penalties, any discounts applied, and how to pay need to be included on the invoice. Missing information can lead to late payments. It can also require an employee to address the issue, which can take time to address. Avoid issues caused by missing data by having consistent and updated data across all of your systems. Automating this can help you save time and ensure that you get paid on time.
Undelivered or Missing Invoices:
If your invoices are not reaching the recipient, you won’t get paid on time. Chasing down missing or undelivered invoices can cost you time and money. Not getting paid on time because of this can lead to negative impacts in terms of cash flow. It can also mean that you’ll have to spend time doing duplicate work. Missing or undelivered invoices can be easily addressed by using financial software that automates the entire process. There are software features that can be catered towards your business needs. For example, you can get an alert when an invoice is opened or viewed. This can allow you to track unviewed invoices regularly to stay on top of any potential issues.
Missing Legal Requirements:
Invoices that don’t meet the legal requirements can cause a variety of issues in the event of a legal dispute. On top of that, they can cause issues with your finances due to late or unpaid invoices. Because an invoice is a legal document it needs to meet certain legal requirements. The invoice needs to include the name of the client, the terms of payment, the cost, and a description of the foods or services delivered. Complying with the legal requirements necessary for an invoice can help avoid legal and financial issues.
Unclear invoices can lead to a lot of time wasted, the need for duplicate work, in addition to late or incorrect payments. Invoices should be clear and to the point. While you need to meet certain legal requirements, invoices should be simple and avoid any periphery information. If you have to include additional information beyond the legal requirements, highlight the portions that are important. This can help ensure that the customer understands how much to pay, when to pay, and how to submit their payment.
Failure to Utilize Information:
Invoices are not just a legal formality for payment. They are filled with information that can be utilized for a variety of purposes when it comes to your business. Invoices can help with business analyses as you can gather important information about your customers, including payment trends, buying patterns, popular products, peak times, and so much more. Failing to utilize this information can be a missed opportunity.
Accounting Solutions for Your Business
Business growth can be exciting, but overwhelming. Automating certain procedures and finding effective solutions to your everyday business issues can help you focus on the bigger picture. Indevia Accounting can provide you with a number of services that are effective and ensure your business is working as efficiently as possible. Streamlining your invoicing can help you avoid the common problems and help you focus on the long-term success of your business. Contact us today to get started on accounting automation solutions that will boost your business.