Whether you’re a small business or a large corporation, you’re going to have to send out invoices to your clients and customers. Even with a dedicated accounts receivable team, there are mistakes that happen far too often when it comes to invoicing clients. When these mistakes happen, your payments are often delayed, which directly impacts your business.
At Capstone Collections, we’ve helped countless clients recover unpaid balances from their clients and we’ve seen the kinds of the mistakes that businesses often make. If you want your clients to pay on time, here are some of the top invoicing mistakes to avoid.
When you’re delayed in getting your invoice sent to your client, it’s only going to delay your payment further. Even if the client is typically a fast payer, if it doesn’t get to them on time your payment isn’t going to get to you on time. Sending out your invoices on time should be a top internal business priority.
If you’re a small business with limited staff and a lot on your plate, sending out an invoice can easily be forgotten. It’s important to have a system that reminds you to send out an invoice to your clients after you’ve completed a project. Something as simple as setting a reminder on your calendar will help get your invoice schedule back on track.
Unclear Payment Instructions
Another common issue, most often seen in small businesses, is the lack of clarity when it comes to the invoice itself. The charges might be itemised and very clearly laid out, but there isn’t clarity when it comes to how to pay the invoice itself. Should they pay via card? Should they issue an electronic check? If you don’t give specific instructions on how to pay the invoice, your clients may not pay on time.
Errors On the Invoice
Before sending out an invoice, be extremely thorough when it comes to invoice reviews. If there are any mistakes on the invoice, it will most certainly cause delays with the payment. Not only will it cause delays by having to issue a new invoice to your client, but it may cause you to lose some trust with the client as well.
If this invoice is incorrect, how are they to know that any future invoices will be correct? It doesn’t take much time or effort to review an invoice before sending it out, but we promise you that it’s more than worth it.
Lack of Follow Ups
In the event that your customer isn’t paying, it’s important to follow up with them directly about the missed payment. Maybe they’ve forgotten about the invoice and a simple phone call will resolve the issue. Or maybe they’re avoiding your calls and not communicating with you. By following up on your unpaid invoices, you’ll be able to create an action plan for those that aren’t paying.
Lack of Payment Options
Small B2B invoices will typically benefit from multiple payment options. The more payment options you allow, the better chance you’ll have at getting paid quickly. If you limit your payment options to one or two methods, some businesses may not be able to pay the invoice as quickly while they establish the infrastructure on their end to pay it.
Mistakes happen, but when it comes to having your invoices paid, it’s important to try and reduce as many mistakes as possible. If you’re in a situation where your clients simply aren’t paying, it may be time to involve Capstone Collections.
For more information on how we can recover money owed to your business, contact the team at Capstone Collections today.