Invoicing Mistakes Small Businesses Must Avoid

Procrastination

As a business owner, it can get awfully difficult to manage so many various tasks on time. It is not uncommon for a small task such as invoicing to slip your mind, or you may think that a regular client or customer will make the payment anyway and push the task ahead.

But you need to remember, that invoicing is your responsibility. One must make it a priority and send an invoice as soon as the job is complete. According to a survey, when you invoice on the same day of the work completion, you are 1.5 times more likely to get paid on time.

Pending Invoices

Now that you have made a priority to send invoices, it is also very much possible that the client misses their due date, misplaces the invoice, or simply forgets about it. You and your team have to take responsibility to get paid on time, so be proactive in sending reminders and contact the client immediately if they miss their payment date.

In a rare case where you are dealing with a terribly unresponsive client, extreme measures can be taken. A case can be filed in small claims court, or if matters get worse, you can hire a collection agency to get your payment.

Undefined Terms

Business dealings must always have clearly specified conditions which come in use, in case of any discrepancies. Never use vague language in an invoice, specify your terms and resulting consequences if those terms aren’t met. But do not define lengthy and unrealistic terms that can hamper business relations.

To create an ideal situation, sign a simple contract with your clients that will protect the interests of both parties. Bring this into practice and you will ease up a lot of your workload. Ask your lawyers to record your agreement and make it official.