Avoid These 5 Invoicing Mistakes


Profit is, without a doubt, the ultimate objective of every firm. Monitoring your company’s cash flow is one approach to see whether it has made a profit. Any quantity of money moved out and into your organization is referred to as cash flow. If your company’s cash flow indicates that more money is coming in than going out, your cash flow is positive, which essentially corresponds to profit.

That stated money must be constantly entering your company’s account. Sending out invoices and being paid on time is one approach to do this. Even though this may seem to be a straightforward task, many company owners, sadly, fail to do so. Failure to deliver bills on time will certainly result in a negative cash flow. (1)

As a result, you must be cautious and aware of the frequent invoicing errors to avoid as a company owner. You’ll be paid faster and maintain a positive cash flow this way.

To assist you, here are five typical billing blunders to avoid:

1. Invoices that have not been viewed

If your invoices aren’t read or found in the recipient’s inbox, payment may be delayed, or you may not be paid at all. Furthermore, if you don’t have software that will alert you when the receiver has read the invoice, the latter might claim that they only saw it a few weeks after you sent it.

Payment delays, as previously stated, may have a detrimental impact on your cash flow. Furthermore, you may be required to prepare a new invoice, wasting valuable time and effort.

You may avoid this issue by employing specialist service scheduling software that delivers bills to the recipient on time automatically. This software often includes built-in capabilities that may notify you when a customer has read your invoice. (2)

For example, Jobber‘s scheduling and finance software is widely accessible in any business and has several valuable built-in invoicing functions. This means that no matter what sector you’re in—whether it’s lawn care or HVAC—you can rely on service scheduling software to help you improve your cash flow.

2. There is no deadline

Your company may use language like ‘upon receipt,’ ‘Net 30,’ or ‘within X number of days when mailing invoices because they seem courteous and professional. However, these concepts are often ambiguous and subject to misunderstanding. For example, if you use the phrase “upon receipt,” the customer may take it as “as soon as feasible,” which might be interpreted in various ways. As a result, there’s a good risk you won’t be paid on time.

To prevent such issues, it is preferable if you just state when you wish to be paid. For example, if you submit your invoice on October 1st and need payment within a week, you may simply specify a date for October 8th. This way, you’ll have peace of mind that your payment will arrive on or before the due date, allowing you to improving your cash flow. (3)

3. Inconsistent information

A good invoice should appeal to the customer aesthetically. This isn’t restricted to how it looks or how simple it is to use. An aesthetically beautiful invoice also means that important information is highlighted, such as the name and payment method. Your customer will feel more secure knowing that their money is going to the appropriate place if you do this.

When it comes to payment methods, keep in mind that several possibilities are available these days, ranging from bank transfers to credit card payments. When it comes to determining which payment method your company should utilize, the rule of thumb is to think about your customers’ likes. If customers often prefer bank transfers, for example, make sure your company offers this as well. (4)

In certain cases, sharing a project estimate before starting any work is beneficial. Once the task is finished, this may be repurposed into an invoice. You may save time by using a free estimate template to see what your invoice will look like before sending it to your customers. This will help guarantee that your bills appear professional and include all required information.

4. Uncertain pricing

Your customers may be startled when they get your invoice if your price rules aren’t clear. This will cause them to postpone, refuse, or challenge your payment. It may even get to a point when the client contacts the police, resulting in legal issues for you and a financial loss.

Ensure your pricing rules are clear to your customer before you agree to execute the project to prevent your invoice from being classified as fraudulent. This may be made easier by writing it down on an estimate template, as seen above (1)

5. Failure to follow through

Many company owners wait a few months before reminding their customers about late payments. They may believe that harassing customers for payment may lead to the latter not paying at all. The trouble with this is that you’re more likely to forget about the payment or settle for a smaller sum than what was agreed upon. Both options will hurt your cash flow. As a result, it’s great if you contact your consumers as soon as possible, particularly if the payment deadline has passed.

Automating payment reminders is an easier option for this. As previously said, invoicing software may help you with this. As a result, investing in this will be a wise decision for your company. (5)

If your company makes one or more of the typical nvoicing mistakes listed above, there’s a good possibility you’re not getting the most out of your cash flow. These errors will harm your consumer relationships in addition to your income flow.

Fortunately, by following the recommendations for each error, you may avoid these problems and improve internal processes and systems, resulting in more effective corporate operations.


  1. “11 Most Common Invoicing Mistakes to Avoid”, Source: https://www.invoiceberry.com/blog/11-invoicing-mistakes-avoid/
  2. “6 Common Invoicing Problems and How to Solve Them”, Source: https://www.netsuite.com/portal/resource/articles/accounting/invoicing-problems.shtml
  3. “10 Common Invoicing Mistakes You Can Easily Avoid”, Source: https://www.freshbooks.com/blog/invoicing-mistakes
  4. “6 Common Invoicing Mistakes You Can Easily Avoid”, Source: https://www.myitems.com/6-common-invoicing-mistakes-you-can-easily-avoid/
  5. “8 common invoicing mistakes you need to avoid”, Source: https://www.pencilpay.com/news/8-common-invoicing-mistakes/


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