5 Common Invoicing Mistakes to Avoid in Your Business

By DeAndra Jalisa

July 26, 2022

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If you’re like most business owners, you probably dread the task of invoicing. It can be tedious and time-consuming, not to mention frustrating if you make a mistake. But did you know that making mistakes while invoicing can cost your business money? In this blog post, we’ll discuss five common invoice mistakes and how to avoid them.

If you’re not careful, it’s easy to make mistakes when creating invoices. Here are five of the most common mistakes business owners make:

Not including all the relevant information

Ensure your invoices include all the necessary information, such as your contact information, the customer’s contact information, a description of the goods or services provided, the date of service, the amount due, and your payment terms.

When you ensure you have the correct information, it makes the process way more manageable. Also, if you need to contact or bill the client for any additional cost/ legal issues, it will save you time and money.

Not clearly indicating the payment terms

Be sure to include your payment terms on invoices (e.g., Net 30) so there’s no confusion about when payment is due. I highly recommend creating a payment schedule for your client, and if you use a CRM system like Honeybook or Dubsado, which have automated payment schedules. Which will ensure you will receive your payments on time.

Miscalculating the amount due

This one seems like a no-brainer, but you’d be surprised how often it happens. Once the invoice goes out to your client, it’s tough to backtrack if you miscalculated the amount. Always double-check your math to avoid overcharging or undercharging your customers.

Make sure you specify when the invoice is due and include any late payment fees that may apply. You should also specify what forms of payment you accept (e.g., check, cash, credit card).

Not sending invoices in a timely manner.

Sometimes we are so overwhelmed we forget to send invoices, which can result in losing a sale or money. Try to send invoices as soon as the work is completed, or the goods are delivered. If you have a business where the services are delivered at a later date, make sure you send your invoice for the deposit. The sooner you invoice, the sooner you’ll get paid.

Not following up on late payments

Follow up with your customer if you don’t receive a payment within the specified timeframe. A simple phone call or email can often prompt them to take action. Again, using a system like Honeybook will help you tremendously as the system will send out payment reminders automatically so that you can worry about other things within your business.

By avoiding these common mistakes, you can save yourself time and frustration and improve your chances of getting paid promptly. Do you have any invoicing tips to share? Let us know in the comments!

If you found this blog post helpful, be sure to check out our other blog posts on Honeybook, such as How Honeybook Can Transform Your Business for the better. Thanks for reading!

DeAndra Jalisa <3

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  1. […] which can help boost sales and enhance customer experience. Popular options include Honeybook, Dubsado, and […]

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