Plagued by avoidable invoicing errors? The fix is in

Given the scale of the additional work and stress they generate, it remains a sad fact of business life that avoidable invoice errors are not only common but dismayingly recurrent. They leave behind a trail of distressed and/or disgruntled customers, clients and vendors needing considerable diplomatic soothing and swift corrective action. And their tendency to keep on happening isn’t particularly good for the blood pressure levels of entrepreneurs and those employees responsible for invoicing.

Tempers can fray, and recriminatory accusations fly when these reputation-compromising mistakes arise, neither of which reaction helps to solve the problem. That’s because the issue is usually down to a factor common to us all (as opposed to, say, the culpable slapdash or negligence of the obstinately careless). And that factor is summed up in Alexander Pope’s famous observation that “To err is human.”

Let’s take a closer look at the kinds of invoicing errors that occur so often, risking the cumulative tarnishing of hard-won reputations (a kind of ‘repetitive stain injury’) – before moving on to the good news: most, if not all, can be relegated to history thanks to new invoice automating technologies.

The common mistakes

As invoices have grown more complicated with multiple fields to enter, the human errors of commission and/or omission in manual data entry have multiplied. Here are some of them.

Getting the purchase order number wrong/failing to enter it: The purchase order number refers to the specific purchase order that itemises the particulars of a sale, such as the products or services required, the amounts, and the agreed-upon pricing. Making an error with this crucial number, usually found at the top of an invoice, can, needless to say, result in much confusion and consternation.

Thankfully, in addition to the abundance of sound, practical tips on good accounting practices now available from trustworthy online sources, for this and many of the errors noted in what follows, a completely reliable technological “fix” is now available. This takes the form of cutting-edge easy accounting software that includes invoice automation.

Some of the specialist vendors of this tech have taken care to select automating software that’s been affordably designed with smaller businesses very much in mind. Supplied on a rental basis, this easily set-up software automates the entry of all data into each of the fields required on an invoice, tailoring each to specific customers/clients/vendors. Bear this in mind in the following paragraphs!

Address errors: it may seem almost absurdly obvious to spell it out but getting the client’s or customer’s personal or business name wrong on an invoice will inevitably result in payment delay because the latter will require a new, accurate invoice. If invoices are drawn up manually, this correcting process can not only be time-consuming but will typically result in delays in payments – the bane of small businesses. Again, automated invoicing software will put paid to this inconvenience at a stroke for all clients, customers or vendors.

Providing erroneous or vague descriptions of goods/services supplied: Especially if a business is supplying another company receiving multiple invoices from other suppliers. Errors in the description of goods/services delivered (and imprecise, vague descriptions) will risk causing delays. It’s all too easy for recipients to slip badly-worded, confusing or plain incorrect invoices in a pending tray, where they may languish for longer than intended before receiving attention.

Make it as easy as possible for customers to pay in a timely fashion by ensuring clarity and accuracy. Again, invoice automating software can help eliminate this annoyance.

Pricing errors: It’s a fact of life that prices can change (and in some markets, they’re more volatile than in others). It’s essential, however, to invoice according to the quoted prices agreed with the client, customer or vendor. If there’s a discrepancy between this agreed price and the amount appearing on the invoice, it’s a safe bet that there’ll be a query. Another delay in payment and another dent in reputation awaits. Invoice prices need triple checking to ensure they’re correct.

Erroneous VAT charges: It’s good practice to avoid unwelcome surprises with customers by clarifying in advance what rate of VAT they should expect when goods or services are delivered and the invoice is sent. This is especially important if a supplying business’s rate differs from the standard rate. If they suddenly get “hit” with an unexpected charge when invoiced, queries (and payment delays) are inevitable.

Omitting ease-of-payment details: Payment methods have proliferated in recent years to include not only cheques and cash but a raft of online payment platforms and apps for ease and speed of settlement. If it’s hard to find the payment options on the invoice, or they’re unclear, people will be inclined to put off paying until they’ve had time to go through the invoice with a fine-tooth comb – a chore they shouldn’t need to do!

The fix: invoice automating software

The government’s shift to Making Tax Digital (MTD) has led to a boom in innovative automated invoicing solutions in the “Software-as-a-Service” space for accounting.

End-to-end automated invoicing software will eradicate the problems itemised above and many others besides guarding against unnecessary payment delays and reputational damage. And it’s affordable for small businesses, too.