Businesses are continually looking for ways to save money and reduce overhead. One of the best ways to save money is by avoiding invoicing mistakes. Let’s explore how you can do that.
Business owners know that the sooner they invoice, the sooner they get paid. While this is a no brainer, it is also more likely that the client will pay on time if they receive the invoice as soon as possible after the service or product is delivered. This is because the client has likely prepared for this expense and the money is there to be paid. Invoicing immediately ensures that the payment is at the forefront of the client’s commitments and will save money on time and materials to send repeat invoices, or the need to use collection agencies.
Include Due Dates and Itemization
Another way to save money is to include due dates and itemization in the invoice. Clients and customers want to know when payment is due and exactly what they are paying for. Neglecting to include due dates leaves the payment action open-ended and dramatically increases the likelihood that it will not get paid. In addition, itemizing the invoice gives the customer a written record of everything they are paying for.
Charge What Was Agreed Upon
Clients and customers expect to know upfront what their costs will be, and if that is a variable that needs to be clearly outlined before agreeing to do business. Charging a customer more than what was agreed upon will frustrate them and likely prevent them from doing business with you in the future. Always notify clients of unexpected increases before the bill is delivered to ensure that any last-minute changes are not a surprise.
A final way to save money and create repeat customers is to be polite in your interactions and invoicing. Thank the customer for their service and express what a pleasure it was doing business with them. In addition, you may offer early payment incentives or coupons for future business dealings.
Other invoicing mistakes might include failing to send the invoice to the proper address or client, not giving payment options, or making grammatical errors in your invoice wording.
Contact Monstera Lending Group to discuss your business financing needs.