Invoice Processing: How to Avoid Common Mistakes
Running a small business can be an infinitely rewarding way to spend your time. You get to set your own goals, be your own boss, and reap all the benefits of your hard-earned success. This is why business owners are some of the happiest people around.
That doesn't mean doing all of this doesn't come with a huge learning curve. If you want to run a business smoothly, you'll need to get familiar with many tasks, including invoice processing.
Working through invoices as a small business owner can be challenging, and there are many common mistakes you can make when starting out. What should you be aware of and how best can you avoid these mistakes? Read on and we'll walk you through the details.
The most common issue that you'll want to avoid when invoice processing? Falling behind on your schedule and making late payments.
Often, late payments occur because of other issues that might arise with your invoice process. However, a late payment can be a serious issue and something to really avoid. Often, vendors will charge you an additional fee if you're late to make this kind of payment.
In addition, a vendor may even decide not to do business with you again if you aren't on time to pay them without a good excuse. Late payments can make it difficult to maintain good relationships with the vendors you work with.
Accepting Confusing Invoices
You don't get to control what kind of invoice you get from a vendor that you do business with. However, accepting any sort of invoice could result in an issue on your end and confusion between you and the vendor in question.
There are all kinds of places to get templates on the web, and you never know what one you might receive will look like. A solid invoice template will be easy to work with, but a bad one could make things troublesome for you.
You should never accept an invoice that has confusing or contradictory information listed or one that is missing any essential information.
This opens the door to miscommunication between you and the vendor. It can also lead to internal confusion between different employees of your business, as this invoice likely needs to travel to more than one person.
Relying on Paper Mail
Sending your payments off in the mail isn't always the most reliable way o ensure that an invoice payment makes it to a vendor.
While 'the check is in the mail' is a common refrain, it's not a line that's going to make you any friends if your payment goes missing or arrives late.
Instead of relying on the postal service, it's best to find a more immediate way to supply payment when an invoice lands on your desk.
Invoice Processing 101
You can't be blamed for making a few mistakes when you start out as a small business owner. That being said, you'll want to do your best to educate yourself and ensure you know as much as possible.
The above information on invoice processing can help you to avoid making common mistakes in an area that could be especially costly.
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