Often small businesses face issues when it comes to receiving payments and sending the right invoice. A good online invoice software can help you to a great extent. However, some common mistakes made by businesses should be avoided at all costs to make the best of your systems. So, avoid the below-mentioned errors to keep up with your finances and scale your business with ease.
1. High Errors and Non-Digital Invoices
Did you know that only 10% of invoices around the world are digitized? Rest all are made manually and then need to be scanned. While scanning is one way, it is not free of errors too.
Not to mention the invoice is difficult to read and may have errors too. The worst part is that even the best-scanned invoice is of no use if the paper invoice is incomplete.
The only solution to this is to create invoices digitally using online invoicing software and then send them to your clients. This will help you avoid issues and incorrect entries altogether. Lastly, it will save time and costs and save a lot of your admin team’s effort.
2. Lack of Review Mechanisms
A digital invoice alone cannot only act as your saviour. Often, invoices are made for the wrong orders, and there are no mechanisms in place to sort them. This happens when vendors and customers do not have a common solution in place.
Thus, they use different descriptions, article numbers, and even different invoice details. Sometimes, all the information is missing altogether. Often suppliers may combine multiple orders or issue a part invoice. All these can lead to bigger issues later.
Using an online invoice maker app reduces processing times and also let you avoid penalties, charges and even give out more discounts.
3. Complex Correction Processes
The issue of error-filled invoices continues to plague the accounting industry. Changed prices, quantities, complaints, cancellations and other issues are real reasons behind these errors.
So, before you make your invoice make sure you check all the details. Also, include information like advancement shipment notice, goods receipt, and tax information if needed. This will help you avoid confusion at a later stage.
These will also include the accepted invoice format, scope, compliance rules and in some cases, the legal requirements of the respective countries. Any ambiguities or changes can then be resolved quickly.
4. Unclear Invoice Status
Often the status of invoices is not clear. Has it been sent, received and then checked? Also, who will check it, and when will it be paid? The status and time frame of all these stages is not transparent for the supplier and customer too. As a result, confusions arise, increasing the burden of the accounting department and delaying the process.
One sure shot solution is to use online invoicing software and track updates via it. This will keep you and your customers on the same page. Not only will it expedite processes, but it will also build better customer relations.
5. Tax Errors
If your invoice fails to meet VAT requirements, things can go haywire. These instances are common when it comes to meeting tax requirements within cross-border supply relations. Also, if the wrong taxes are due, your payment can be delayed further. In order to prevent these issues, make sure you collect all information needed and feed it into your online invoice maker app.
6. Dealing with Delayed Payments
How many times have you heard businesses dealing with delayed payments? This happens as you don’t set the right due dates for invoices and have no mechanisms to send reminders.
Also, your invoices may get buried with other invoices if you send them late. To avoid all these issues, it is best to invest in a good invoicing solution that can let you automate the entire process and be at ease. This will save you 100s of hours each month which can be used for productive tasks and improving customer satisfaction.
Many invoice processes still lack efficiency. However, if you work on the above-mentioned issues and invest in a good online invoice maker app, the problems can be solved. Don’t wait any longer, and digitize your processes using your online invoicing software to get the best benefits!