Generating invoices is the most important part of accounting and GST. It might look easy at first glance but generating incorrect invoices may lead to some bad consequences such as late payments. Many time in a hurry to generate an invoice we miss out some details because we don’t have the time. Generating the wrong invoices directly reflects the efficiency of your invoicing process. So in order to get correct payments on correct time breaking these following 7 bad invoicing habits is a must.
An invoice is a piece of paper that represent the details about the product purchased by the receiver. And sending an invoice to the customer without sending the complete information may lead to late payment or no payment. So it is necessary to create an invoice which has all the information scribed and that easy to understand and checks all the professional requirement. It shall be got without saying that the invoices shall not be hand scribed or badly formatted. To generate an effective and professional looking invoices you should have proper software that integrates your ERP easily.
There can be times when you send the invoice to the incorrect contact or address this may lead to delayed payments which in turn may impact your business day to day workings. So make sure you cross check and ask the person the correct address in case it is not clear from a purchase order or any other related document.
Sometimes to make the payment there is a certain requirement of an organization that need to be taken care off. Such as some organization require a purchase order to be attached, in order to make the payment. It is necessary that you know each and every requirement of the customer so that they can make a payment whenever the invoice is given.
It is necessary that you understand that your customer has to carry out a lot of activities every day so it is you should always try to create an invoice that meets the expectations of yours. You should make sure that they don’t go wandering for the due date or calculating the due date if any. In case if the invoice is unclear than they might keep them aside till they find the time to calculate the due date.
In a case, if your address does not have a payment link on your portal or a remit address then your customer may ignore and do the priority work. They get another reason for not paying the amount on a timely basis. Moreover, having a payment link on your portal makes it easy for you to receive the payment without much delay. In addition to this, it is also beneficial for your customer as they find convenient and safe to make the payment online immediately.
In case if your customers are making payment after the due date, then it is necessary to make the payment along with the late fees. However, you should always take the help of a professional to set the late fees. Moreover, the percentage of late fees in many countries is a matter of state government so you must be aware of that too.
Enough has been said about the invoice mistake and incompleteness, let us now talk about the most common mistake that everyone commits. Sending late invoices to your customer will lead to the late payment that will, in turn, hamper your day to day activities. Furthermore, it is impossible for you to remember all the transactions in case if the number of invoices is higher.
Invoicing is an integral part of bookkeeping or accounting and hence it is the most important part of a business. Any mistake in the invoice may lead to wrong payment or non-payment for the goods that you have sold. So to generate correct and GST compliant invoices Masters India has established a software known as autoTax GST Software. This helps you to generate and send the invoice to the respective customer/clients in a single click.