Get paid on time: Avoid these 5 common SME invoicing mistakes
by
Sable International
| Sep 30, 2015
Get your VAT right
Ensure that you charge the correct amount of VAT for the correct items. Be clear with your client which items are zero-rated and which are reduced-rate. If you have a VAT number, be sure to furnish the client with it.
In our experience, a lot of invoicing errors are VAT-related. These issues are relatively easy to solve; if you are unsure of any VAT related issues, please do not hesitate to call your accountant.
Client details
If you get your client’s personal or business name wrong, you will have to issue a new invoice. This is not only unprofessional and far from best practice, but it will cause a delay in payment.
When your client owns multiple businesses, take care that you identify the correct business on your invoice.
Describing your service
Be very clear when you describe the services that you rendered for the client. If there is any ambiguity, or if the description is vague, the client may dispute your charges.
Clients typically pay numerous contractors and SMEs every month. If your invoice is not clear about what you are billing the client for, they will likely query the charge, delaying payment.
Double check your price
If you have changed your prices recently, make sure that the prices included on your invoice are the prices you have agreed to charge the client. It is not unusual for small businesses to make mistakes at this stage, so it is important to confirm that your pricing corresponds with the amounts appearing on your invoice.
Make payment as easy as possible
Clients are more likely to pay you quickly if you make the payment process easy. Make sure your payment details are clear and easy to use; ensure that you have a range of payment options available. If there are any barriers to completing your payment, you should expect to run into problems.
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