What is causing your invoice problems?
By Danny Batler
Before you send the first invoice, the work you do can prevent accounts from ever becoming delinquent in the first place.
Past due invoices happen for all kinds of reasons. At CannaBIZ Collects, we’ve pretty much heard them all.
Over many years in the collections business, we’ve found that past due invoices can sometimes be prevented altogether with a few simple fixes.
Frequent communication, follow-up when an order has been received, and confirmation after you send an invoice, can circumvent issues down the road.
Now sometimes, invoice issues are more complicated than simply mailing a new one, but here’s how you can get rid of those simple invoice mistakes.
Lost Invoice
Sometimes invoices are lost by your clients. This can happen very easily. It could simply have gotten lost in a sea of paperwork or even dropped off at the wrong address. The easiest way to handle this common issue is to ask your customer whether they prefer mail or email.
Your customer may have a dozen reasons for picking one method of invoicing over another. But, no matter what those reasons are, if you accommodate your customer’s preference, you’re much less likely to hear, “I never got your invoice.”
Many companies turn to technology to invoice customers using email for invoicing instantaneously. However, when it comes to using email versus regular mail, there are things to consider.
With regular mail depending on the kind of shipping you pay for, it can take a while to reach your customer. Unfortunately, along with this waiting period comes the risk of it being lost before even reaching them.
That is why so many companies are taking advantage of using emails to send their invoices. Emails are fast, reliable, and they can’t be lost.
Complicated Invoice
Start with straightforward, easy-to-read invoices that prominently display the information your customer needs to know at a glance.
Just like you, your customer is a busy person. You certainly don’t want to make paying an invoice complex in any way! If your invoice is confusing or complicated, it can get placed in a ‘to do’ pile, which will delay payment.
Lots of white space makes an invoice easier to read and quick to scan. However, you may wish to use color to draw attention to certain areas of your invoice.
Pay careful attention to the font you select. Font legibility can play a crucial role in how quickly you get paid.
When you first establish a relationship with your customer, we advise showing them an invoice while you go over payment terms.
Inaccurate Invoice
It’s worth your time to check and double-check invoices for accuracy. When you put more time into your invoices, there will be fewer inaccuracies found within them.
When there’s an inaccuracy on an invoice, payment usually slows to a crawl. Your customer will simply push the invoice to the side, and it’ll slowly become a part of the to-do list.
Either way, payment is delayed and now has created the potential for distrust, inherently slowing future costs.
Conclusion
Handling invoices doesn’t have to be complicated. When you take care of the little things, they are less likely to become significant issues.
Start by simply watching for inaccuracies, making your invoices less complicated, and ensuring your customer receives them every time.
Invoices shouldn’t be an intricate part of your day, so don’t allow them to become one.
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