True Cost of an Invoice

There are lots of responsibilities that come along with running a business. One of those is sending invoices to customers for products or services rendered.

But if you’ve been sending invoices and not getting paid, you need to find out why in a hurry. After all, without money coming in, your company or employer probably won’t last long.

For example, maybe patrons are not getting enough information to get you paid. Here are some reasons complete invoices are important to any business.

1. Get Paid On Time

One of the first, and most obvious, reasons complete invoices are important is to get paid on time. If you have a large number of customers, you’ll naturally have more invoices to send out. The more invoices you have to send out, the longer it takes to prepare them.

Of course, your company might have an automated invoice system that does the work for you instead. But even if you do, the information in your invoicing system still needs to be correct. The more invoices with missing information or errors, the slower you’ll get paid.

In addition, customers may not know where or how to send payments to your business. The invoice amounts might be wrong. Or, there could be other errors.

It doesn’t matter why the wrong invoices occurred because the results are the same. You’ll get slower payments for your business or employer.

2. Reduce Billing Questions

There are other reasons complete invoices are important. The better your billing practices are, the fewer questions your customers will have about their bills.

As mentioned above, incomplete information can prevent customers from reaching you. They might genuinely want to pay their bills on time but be unable to do so.

If your invoices are not complete, they may not be able to get their questions answered. That can result in delayed payments or no payments for you.

However, even if they are able to reach you, it takes more time to correct billing errors. If your invoices were correct to begin with, you can spend your time more productively.

3. Eliminate Tracking Problems

Let’s suppose you send out invoices that are not numbered or have invoice number errors. Whether you file them electronically or by paper, these situations can create tracking nightmares.

You could end up with invoices from one customer being added onto the monthly statement of another. Or, when you try to credit one invoice it shows up on the statement of a completely different customer.

These types of errors don’t have to happen. Creating complete invoices ensures that the right customers get billed for the right products or services.

4. Stop Problems from Repeating

Some businesses set up recurring billing for customers who have repetitive products or services. This is a way to speed up your work processes and eliminate manual labor.

In that instance, complete invoices are important because those that are incomplete may get regenerated. Therefore, any wrong or missing information could repeat each billing cycle.

Of course when you have a business to run there’s lots of other responsibilities. However, creating complete invoices is important and will save you time in the long run.

Kayla is passionate about helping people get their finances in order so they can pursue a life of freedom. She quit her job to work for herself with over $148,000 of debt and swears it was the best decision she's ever made!

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