7 Business invoicing errors that can be avoided easily


Nothing is more important than invoicing, of all your responsibilities as a business owner. You won’t be able to get cash to flow into your business without invoicing. Without that cash, you’re not going to be able to grow your business-let alone keep the doors open for a long time. Nevertheless, invoicing is more than just getting paid for the goods and services you supplied. It can shape your relationship with your customers too. Think for a second on it. When you wrote a customer saying, “Hey, pay the $500 now or else!” How do you think the client’s going to answer? Even if they pay you ASAP, I very much doubt they’re going to do business again with you.

1. You forget to charge your Customers

This is the worst error a company owner can make. Forgetting to bill your customers is an indication you don’t care when, or if, you’re ever compensated for the services or products that are rendered. It can also convince the consumer that you’re not a specialist who needs to get paid on time.


Please make invoicing a priority if you want to be taken seriously as a specialist, while also enhancing your cash flow.

2. Never check up on unpaid bills


Even if you have prioritized invoicing, any past due invoices still need to be followed up. After all, sometimes an invoice is not paid by the due date. Not being proactive shows you don’t have to be paid.


As a company owner, the follow-up of late payments is your responsibility. This may be email, telephone or visit by kind (but company) if the customer is located near you. The longer you wait, the lower the probability of the invoice being paid. If you use apps for invoicing, your customers are sent late payment notices automatically.

If again, you want to take late-payments immediately after you are taken seriously as a professional and not an amateur, which can be pushed away. In many circumstances, the reason the customer did not meet the due date is actually a good one. But you may have to take measures such as bringing them to small claims courts, if the customer does not respond.

3. You are always persistent on your clients


You don’t want to annoy your clients many times a day at the same time. You’re a company owner, not a crooked collection company.



You’re not only annoying them, but also desperate when you hound your customers to pay. And you’ll give the customer greater leverage to skimp a payment when you look desperate.


This does not mean you can indulge yourself. Late payments certainly follow-up, but don’t go overboard.

4. You start the job without fore-payment

In fact, it is common practice among business owners to require payment down. Whether 50/50 or broken into thirds, this reassures the customer that the project is a goal. It also shows customers that you are a professional that knows how to run a business efficiently.



As an additional benefit, down payments provide a cash flow to pay your costs in larger projects. The blow is also relaxed if the customer bails a payment.

5. You don’t request a full payment

This can be fair to deal with exclusive, up-market customers. As a result, when it is time to invoice these customers, it ensures you are not played.


But on your part, it still can be a risky move. If you request a payment before payment starts, you do not trust the customer with a sign. And you would work with someone you don’t believe in?


If you are not sure a new client, do some research to ensure that the reputation of a new client is not bad. If you are still not sure, it would be easier to offer a down payment.

6. Billing as soon as their job is done

Once again, it’s not out of the ordinary entirely. When else should you invoice a customer then, I mean?


This is the matter here. If you invoice the customer the moment you finish a project, they might be suspicious that you are overcharging it. That may be the impression, even if this is not the case.



Another concern is that a bill can not synchronize with the billing cycle immediately after a project is completed. In fact, you’ll likely have to wait three weeks for the bill to be paid if the bills are payable on the first of each month, and you send out a bill on the seventh of the month.

7. No written letter of agreement

You don’t have to have a written agreement in a perfect world. This is not the world in which we live, sadly.


Written agreements protect you and your company as they set out the most important terms of payment. Then both sides received written notification of the expected payment. This not only eliminates surprises when the bill reaches the customer; it can also be used if you are required to bring an unpaid invoice against the customer.


Bear in mind the need not be overly complicated to reach a written agreement between you and the other party. It can be a one-page document explaining the extent and conditions of the work and payment.


Komolafe Timileyin is a passionate entrepreneur that loves to solve entrepreneurial issues. He is also a blogger and an upcoming Engineer.

Add a Comment

Your email address will not be published. Required fields are marked *

Social Media Auto Publish Powered By : XYZScripts.com