A key aspect of getting paid for the products sold or services rendered to a customer is to send an invoice. Many businesses and companies in India are guilty of making some mistakes and errors with invoicing that results in delayed payments. Here are the common mistakes that Kollecto, a leading debt collection company in India, comes across when working with their clients. These mistakes, highlighted by a renowned B2B debt recovery company like Kollecto can help businesses to identify the gaps in invoicing and fill them up to send accurate invoices to receive the payments on time.
Mistake # 1: Not mentioning the due date
● When making any invoice, irrespective of the amount, it is crucial for you to mention the ‘due date’ for making the payment.
● The most ideal way to avoid any confusion and dispute at a later stage is to specify the ‘due date’ on the invoice itself.
● For example, if you raise an invoice on the 1 st of the month, and expect payment to be received within two weeks, you should mention the ‘due date’ as 14 th of the same month.
Mistake # 2: Sending an invoice that is incorrect
● Billing errors may happen due to oversight.
● Sometimes there can be a mistake in the amount, tax calculated, tax number, party name, or any other particulars.
● It is best to cross-check the details being entered in the invoice before sending it to the customer.
Mistake # 3: Including additional or hidden charges If you want to charge any additional expenses or make some last-minute changes to the amount, it is best to communicate it to the customer earlier rather than including any surprise charges which he/she is unaware of.
Mistake # 4: Not mentioning the payment details In the invoice, not mentioning the payment details like bank account number, bank name, UPI, or any third-party payment service can give a reason to the customer not to clear your dues on time. You must specifically mention your desired payment option in the invoice with all details and also provide them an alternative payment method, if possible.
If you want to know more useful tips in preparing invoices for faster payment from customers, you can take help from one of the best invoice collections companies in India , Kollecto.