Close this search box.
Blog » Business Tips » Invoicing Mistakes Costing You Money

Invoicing Mistakes Costing You Money

Financial Tasks for Small Business Owners

Our goal as business owners is to do work and get paid for our time. Invoicing for the work we do is how we get paid. If we don’t invoice properly, money can come late or not in the form of payment that we want which can be a huge hassle. There are a few invoicing mistakes you can avoid to improve the likelihood that you get paid on time and in the right way.

Not having payment terms

Payment terms are the conditions of payment that you set for your business. Payment terms tell the client or customer when you expect to get paid. Terms are often written out as Net 7, 10, and 30 days. This means that clients have 7, 10, or 30 days to make payment.

Small business owners should consider shortening the payment term to manage cash flow better. If you have a payment term that’s 30 to 45 days, you may find yourself strapped for cash because clients have such a long window to pay you. Making payments due upon receipt or within 7 to 10 days can make it easier for you to pay yourself and manage business expenses.

Not specifying payment methods

If you want to get paid in a specific way, you need to make that clear to your customers. Do you not accept paper checks? Do you prefer online payments? Be clear with your expectations. Explain to your customers how you want the payment to be made.

If it’s online, Due offers a low-cost and secure way to process your payments. You can run through the payment process with clients to make sure they understand how it works. The benefit of online payments is you don’t have to organize many paper checks which can be a nuisance.

Not sending invoices in a timely manner

To get paid on time, you need to send invoices on time. If managing the books and your business is difficult, consider hiring a bookkeeper or ask your assistant to send out invoices. Mark a day in your calendar, possibly once a week, where you look at your invoices and make sure that you’ve sent out all of the right ones.

Not following up on your invoices

Sometimes clients simply forget to pay an invoice. Maybe they rely on reminders from you a few days before the invoice is due. Send out reminders when necessary and follow up. You’re not bothering people when you’re asking for money that’s due to you.

Be friendly when you ask for payment. There could be a misunderstanding or reason they haven’t paid yet. Let them know you haven’t forgotten by following up to find a resolution to whatever the issue may be.

Not following up with your invoices means less money is going into your pocket. You don’t want to find yourself at a point where your cash flow is hurting because you have a stack of unpaid invoices from clients who are accustomed to paying whenever they feel like it.

Final Word

Invoicing and receiving payment is a key part of a business that you need to have under control even if you’re busy. Set up payment terms, be clear with how you accept payment, and follow up on all invoices to make sure you get the money you deserve.

About Due’s Editorial Process

We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading finance and industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.

Personal Finance Writer
Taylor K. Gordon is a personal finance writer and founder of Tay Talks Money, a personal finance and productivity blog on hacking your way to a happier savings account. Taylor has contributed to MagnifyMoney, The Huffington Post, GoGirl Finance, Madame Noire, and The Write Life.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.


Top Trending Posts

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More