11 INVOICING & BILLING MISTAKES EVERY B2B COMPANY SHOULD AVOID
Controlling finances is among the most important aspects for running a successful company, regardless of the nature of the business or the size. Invoicing and billing is an integral aspect of budgeting, and not paying attention to these can be a costly error. Whatever the difficulty you may find the billing process is, you must keep an eye on the process and concentrate on streamlining the process.
A simple error can cost your business in a huge way. Invoicing and billing mistakes could impede cash flow and the impact can be felt throughout the entire organization. Late payments can damage your relationships with employees, suppliers, and other stakeholders. If the errors are found to be fraudulent, they could result in an investigation and a significant injury to your company’s image.
From minor clerical mistakes to invoices that are financial roussety that are too complex for you to settle, this blog explores the pitfalls of certain billing and invoicing practices that impact money flow. Have a look.
Not Generating & Sending Invoices on Time
In simple terms, the more time you put off sending invoices, the longer the payment will be delayed. Ideally, you should create invoices immediately following the sale is complete or the expiration of a contract. Payment solutions online make it possible for companies to receive, send and track payments in a seamless manner. Instead of relying only on your memories or reminders, it is now possible to view all of your invoices from one location.
Expecting Payment Without Sending an Invoice
A verbal contract or handshake does not suffice to guarantee timely payment. It’s a good decision to draft and sign a straightforward contract as loyalties may be swiftly alter within the business world. The second reason is that you shouldn’t count on your customers to remember when they are due to buy your goods as well as services without an invoice. What will they be able to know about which amount to pay? A bill of exchange outlines the reason for payment of the amount as well as the authorization for the payment. Maurice Roussety
Never Sending a Follow Up
The majority of entrepreneurs have a myriad of things to do. Therefore, it’s not a surprise that they may not pay for their services, even when they receive an invoice.
What should you do if prospects don’t respond in a timely manner to the message you sent them on LinkedIn? You could have to follow up with them by using LinkedIn’s auto-generated messages. In the same way, sending follow-up messages is a great way to remind customers of late invoices.
Maintaining a log of unpaid invoices and sending follow-ups could take a lot of time. It is recommend to consider using invoice software to streamline these chores.
Unclear Payment Terms
It is important to clearly state the terms of payment when you send invoices to customers is vital importance. Any ambiguity in your invoices could cause confusion and delay in payment. Be sure to use straightforward and concise terms, and include all of the essential information in your invoices.
Not Including an Itemized List
Similar to you, the customer likely has business relationships with other suppliers. The absence of an itemized list of your invoice could cause payment to be difficult. The client will have to put in the effort to find out everything you’re charging them for. It is recommend to provide an itemize list on your invoices to increase clients’ ease.
Not Sending Invoice to the Right Person
It is likely that you won’t get your payments on time if make an invoice out to the incorrect person. Avoid confusion by establishing the contact person before you sign an agreement.
Adding Hidden Fees
Your business relationships could quickly go south if you don’t provide transparency. When you add hidden costs to the invoices you send out, you could be making clients feel like you’re a fraud and damage your reputation. Avoid schemes that promise quick cash, and instead, focus on building long-lasting relationships.
Limiting Payment Methods
The inability to diversify your payment options could result in late payment as well as poor customer experience. Your company should be able to provide customers with many payment options to make faster payments. You can let them pay using a check or bank transfer, credit card or online payment options online payments, and many more.
Forgetting to Mention Late Fees
If there’s no consequence of late payments, customers who are not paying on time may hold off payments for a long time. This is not good for businesses. Invoices that mention late fees can create a sense of urgency. This is a straightforward but efficient method to make sure that invoices are paid prior to their due dates.
Failing To Brand Invoices
Everything is an opportunity to brand and market You just have to have the right mindset. The addition of your logo to invoices allows customers to differentiate your company from the rest. It is also a great way to market your company by sending out mailers and newsletters in addition to invoices.
Relying on Manual Data Entry
We are moving steadily toward automation, and it’s the perfect time to update your invoicing procedure according to the latest trends. Using manual methods can be time-consuming and allows for mistakes to be made. As well as making the investment in an efficient and reliable invoicing system, you should begin storing and backing up all of your invoices to the cloud. This will let you access your invoices at any time and from anywhere. This also will allow you to enhance the experience for customers by using long-tail automation.
In the scheme of things, some entrepreneurs might think that invoicing and billing procedures are to be a waste of time. They are crucial in helping you keep cash flowing and maintain relationships with various parties. The above tips should help you understand and resolve the various issues that arise with billing.