"One thing is certain in business. You and everyone around you will make mistakes. " - Richard Branson
What's important is learning from mistakes. A recent survey shows that around 15% of small business owners receive their payment as late as a year after sending their invoices. Why so? It's because you might be making any of the mistakes listed below while creating your online invoice using an invoice generator.
Here are 8 common mistakes to avoid while creating an online invoice and how you can avoid them.
1. Not sending prompt invoices
If you are setback from sending invoices on time, it will in turn delay your payment and slow your business. Also, another important thing to keep in mind while sending out invoices is to send them to the right person and the right department. If you send it to the wrong person, it will cause chaos among your clients, portrays you as quite unprofessional, and delays your payment.
2. Overstating or understating invoice value
Also, when you quote a certain value and mention a different value that is quite higher or lower than the quoted price, it may lead to misunderstanding between you and your client. It may also confuse the client and delay your payment.
3. Not itemizing your services
It is not an easy task for your client to identify why they are paying so much for you if your services are just vaguely present. It may also come as a shock for them if they are paying quite a large sum to you. Instead, if you itemize each of your services clearly, it will be easier for your clients to understand why they pay what they pay. It might also reduce the shock for them and instead increase their willingness to pay you on time.
4. Lack of Professionalism and manners
"Etiquette is more than a handshake. It's code for the way things are done." And if you want to get done with the payment as soon as you can, there are some etiquette's to be followed while creating an invoice too. An example would be adding a warm thank you note at the end of the invoice. It reminds the customer that the invoice is not just a paper but a face of a human brand and thus gets your payment done ASAP!
5. Incorrect or missing information
While misspelled names are a good marketing tactic for a cup of coffee, it's definitely not a good idea to add it to an invoice. It's a huge turn-off for the client and shows your unprofessional-ism if you send an invoice with incorrect information on it.
But what if you don't know the correct name or any other detail of the client? Is it okay to just avoid it? Definitely not! It's always better to ask the client right away about the information you need instead of just leaving them out in the invoice. It not only shows your professionalism but also will be helpful for your and the client's future references.
6. Not adding terms and conditions
If you want your payment to be done on time, you need to add information about that such as when should the payment be done, what happens if the payment is delayed, and the channels of payments.
A clear invoice should also be inclusive of all the taxes by clearly stating the tax amount that the client is paying.
7. Writing unclear terms and conditions
You've mentioned the terms and conditions. Well and good! But are they understandable to the clients?
Well, that's something more that you've to focus on!
For example, if you've mentioned that the payment should be done in 7 days, is it 7 business days or consecutive 7 days?
Ambiguous language and description always lead to confusion. Therefore, be as clear as possible while stating your terms and conditions.
8. Not adding multiple payment channels
If you want the payment to be done on time, you should give the client the freedom to choose between multiple payment channels that are convenient for them. This will make it easy for the client to choose an option that's hassle-free for them and thus easier for you to receive the payment within the due date.
An invoice is not just a mere means of receiving payment, it's a part of your brand and business. It's an essential element of a business to ensure that you have a positive cash flow in your business.
So the next time you create an invoice online, ensure that you avoid these mistakes, or just use an invoicing software like the Invoice Temple, an online invoice generator that can create invoices for free! Sign up now!