Typographical errors, entry errors or partial entries are some of the common errors that occur when creating invoices. Omitting information or making an error on an invoice may delay payments or even create a dispute between the parties.
We have developed a checklist to help you ensure that you are creating an invoice with no discrepancies or omissions that can lead to conflict or delays.
1- Include Your Contact Information – Your company’s name, address, website information, telephone number and email should be placed at the top of your invoice. This information should be included on every invoice. One easy way to ensure this information is always included is to set up an invoice template with this information already filled out.
2- Create a User-Friendly Invoice Tracking System – An invoice tracking system will help you located and track all of your invoices. When a customer calls in or your phone a client about an invoice, the reference number included in your invoice will help you or the client locate the invoice quickly.
3- Include Receiver’s Information – When you are creating an invoice, make sure to include the receiver’s information as well. This information can be located at the top of the invoice below your information or at the bottom of the invoice. This information can help you consolidate your records and quickly find all invoices associated with a client or customer.
4- Include All Pertinent Information – You should include information on the product or service provided, the unit cost, the quantity ordered, the price for the goods or services and the tax rate and shipping costs associated with the invoice. Create standard fields that are ready to be filled in. When you create an invoice with all of this information, your clients or customers are less likely to contact you with questions.
5- Add a Description of the Goods or Services Provided – Most of the time, it is best to include a brief description of the service or product provided. The description should provide the information that your client or customer needs to know exactly what the invoice is for. The description should include the number of units sold, the cost per each unit and any other information that will help the client or customer know what the invoice pertains to.
6- Include Your Terms of Service Agreement – Many businesses, especially freelancers, small businesses and service providers forget to include this information. The terms and conditions will state when the due date is as well as any late fees associated with past due payments. For example, all invoices are due within 5 days of receipt. Payments made after the due date is subject to a x-dollar amount late fee.
7- Send Your Invoice as an Email Attachment – If you will be sending your emails over the internet, it is best to attach the invoice to an email. Also, request a read receipt so you have proof that the receiver received your email.
8- Enter Invoice Information in Your Tracking System – Once you have sent the invoice, make sure to update your tracking system with the date and time the invoice was sent, who it was sent to, the amount of the invoice and the invoice number. This system will allow you to keep track of those who have paid and those who have not paid.
9- Keep Track of Late Payments – If a client or customer has not made their payment, contact them via email and include the invoice number, the date the invoice was sent and the amount owed.
I am sure, using the steps listed above will help you keep all of your invoices consistent and easy to track.