Top Three Questions to Ask Yourself when Raising an Invoice for Your Customers

Invoicing has always been seen as a tedious – but necessary – task for any business. And if you are a business dealing with supplying goods or services to customers, invoicing can take up a big portion of your time. Regardless of this, proper invoicing is well worth it, as it ensures that you get paid on time and there will be fewer questions raised by your customers as well.

But in order to create the proper invoices, you have to make invoicing a priority. It is not merely a task that you can put off or settle when you have done your other tasks and responsibilities. Make sure your invoices are done promptly, properly, and with the right amount of foresight. If you are not able to prepare the right invoices, you may end up with late payments, or worse, non-payments altogether.

Following are the top five important questions to ask yourself when preparing an invoice:

1. Do you prioritise invoice creation as soon as you have sent out goods or performed services?

Needless to say, some businesses tend to delay the creation of invoices and only pay attention to them at the last minute. But if you want your invoices to be done properly, it is better to make them as soon as you have supplied goods or performed a service. This not only allows you to take care of invoicing immediately, but it also allows you to have more time for other tasks since you no longer have to worry about invoice preparation.

2. Do you know what information is required in your invoices?

There is standard information that should be included in each invoice. If it is lacking, you could be facing a query from a customer. When preparing your invoices, make sure they have the name of your company and the name of the company’s representative (i.e., you), your company’s address, and your company’s registration number for VAT. The customer’s information should also include their full legal name, their address and delivery address (if it is different), the date and method of delivery, the customer’s Purchase Order, and a description of whatever goods or services you have provided. The description of goods or services should also include quantity and price as well as discounts, plus the total amount that is due.

In addition to this standard information, your invoice should also include your agreed-upon terms of payment, the invoice’s due date, and payment details (bank account numbers, etc.).

3. How do you deal with queries, late payments, and disputes?

It is also important to have a clear set of guidelines when it comes to dealing with invoice-related issues, such as queries, disputes, and late or non-payments. Do you employ an organised process of handling disputes (such as a thorough investigation and process of resolution)? Do you keep a record and documentation of all the details of any dispute? Do you keep a record of your customers who regularly question or dispute invoices?

When it comes to late payments, do you have a clear set of rules? How do you deal with customers who regularly make late payments? If you have not done so yet, you should establish some rules regarding late payments, such as interest fees and late payment charges to discourage your customers from sending in late payments in the future.

When all is said and done, you wouldn’t want your cashflow to suffer because of late or non-payments. And if you want additional security, you can always benefit from cashflow solutions such as those offered by ultimatefinance.co.uk.

Image courtesy of Stuart Miles/ FreeDigitalPhotos.net

Author: Richard Casteel

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Richard is the chief author of this blog. He worked as a financial advisor in money market form last 10 yrs. His financial sense in Share trading and any other trading is just outstanding. He just shares his knowledge and experience through this blog. You can contact him directly though CFD-Providers.com.

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