Invoice discounting are the lifeblood of your business. They’re how you get paid, after all. But sending out an invoice isn’t just about getting a check in return: it’s also about keeping your business organised, making sure clients are billed correctly and on time, and save yourself from costly mistakes.
Using Manual Invoicing System
Invoice discounting systems are time-consuming, error-prone and expensive. They can also lead to human errors that could cost you big bucks.
When you choose manual invoice software, you’re going to spend more time with the process of invoicing than you should.
You’ll have to manually create new documents, manually fill out data fields and manually upload documents into your accounting system—all things that don’t need to be done by hand.
Manual invoicing is also liable to human error because there’s no way for the system itself or anyone using it (including yourself) to ensure everything is done correctly every time.
On top of this, manual systems make it difficult for businesses with multiple employees or locations; scaling up quickly becomes impossible without a huge investment in training and technology support staff members who know how to utilise these systems effectively.
Sending Incorrect Invoices To Clients
The invoice is one of the most important parts of running a business, and there are many ways to go wrong.
Make sure you have your terms and conditions clearly defined and the right tax information on your invoices.
If you are selling taxable products or services, make sure to include them in the total amount on your invoice. If you’re sending an invoice with items that aren’t taxable (like a gift card), make sure that’s clear in writing too!
Having Unclear Terms And Conditions
When it comes to invoice discounting, clarity is key. If customers get confused about what they are paying for, they may end up paying more than expected — or worse, cancel their order altogether.
Here are some ways you can reduce the likelihood of this happening:
- Include a summary of terms and conditions on your invoice so that customers know exactly what is included in their payment. This includes things like cancellations and returns as well as late payments.
- Don’t leave out any fees from your invoice unless those fees are waived for early payment or some other reason (e.g., discounts). The best thing to do would be to list all potential charges upfront on the invoice, so there aren’t any surprises later down the road.
Conclusion
Using a manual invoicing system will cost you more money than it’s worth. You have to spend time entering all the information manually, and then there’s always room for error when sending out the invoice.
It also means that you won’t be able to make any changes on the fly if something goes wrong with your financial records or there are other issues with your payments—which is likely since they made their way through so many hands before arriving at yours.