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5 Mistakes to Avoid when Sending an Invoice

This post is also available in: International

Invoice is an important element for all existing business operations. As long as there are sales activity being conducted, an invoice is a must to get paid. Therefore, we should avoid mistakes when sending invoices.

Although the importance of invoices is fairly significant, errors are still rather common. Here are the top 5 common mistakes that you should avoid while sending an invoice.

1. Incomplete Company Information

An invoice doesn’t act solely as proof of purchase or documentation for payment. It also represents a business’ image and identity. An invoice with incomplete company details can leave a negative impression on the company’s reputation.

Constructing proper company information has many benefits; such as personal branding and good publicity. In short, always include proper company information such as company logo, name, and address, to properly establish your company’s identity.

2. Over-Complicated Items Description

When purchasing items from a business, clients expect to receive a clear and direct flow of information regarding their purchase. When constructing item descriptions, make
sure it is clear and understandable. Examples of good item descriptions:

“Logo Design”
“Business Card”
“Accounting Software Package A”

Item description should be clear and direct to avoid the client’s confusion. One of the characteristics of a good invoice is to deliver the correct pieces of information. In a nutshell, always construct clear and direct item descriptions for your clients.

3. Constructing Shady Payment Details

The main purpose of an invoice is to inform the client about the item purchased, the payment method, the payment due date, and the total amount of payment. There is literally zero room for errors when it comes to invoicing payment details. The amount stated in the invoice will be the final amount that the client will be paying, and the payment due date should be stated clearly to avoid confusion. Therefore, it is important to double-check the final payment details to avoid unnecessary inconvenience.

4. Unprofessional/Non-Original Invoice

The overall look and design of an invoice often represent the company’s capability in delivering quality services. Therefore, it is important to keep your invoice well-structured and well-designed. Also, consistency is key. Having a standardised invoice will help with building your reputation.

Some businesses generate invoices using software such as Excel or Word. There is no problem with using the mentioned software. However, these solutions are prone to human mistakes, and that doesn’t help with consistency. Therefore, it is important to seek invoice services from a professional service provider.

Here is an example of how a properly craft invoice looks like:

5. Sending an invoice without copies or backup

It is compulsory for businesses to keep a copy of every invoice. Whether it’s in a paper copy or stored on a cloud-based service. New businesses often make mistakes by not storing a copy of their invoices, which will lead to time incomplete business documentation or time wasted to find the missing copy.

On top of that, copies of invoices should be organised well so that auditors can find any documents easily. Good documentation with help with a smooth year-end closing of accounts. Therefore, moving your accounting process to the cloud is good for collaborating with stakeholders internally and externally.

All in all, it is important for businesses to avoid these mistakes when sending an invoice.

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