Are These 4 Key Details Missing from Your Invoice?

Rhoda Ochieng
Sep 5, 2018 · 3 min read

Why do some clients take a long time to process an invoice?

You sent it immediately your work was submitted. But after thirty days (or whatever deadline your terms specify), you are yet to receive payment. Invoicing is a simple process, that, if not taken seriously can result in missing details. This, in turn, may lead to cash flow problems in your business.

If your invoice is missing some or all of the details below, it may be the reason your payment has delayed.

1. A Header

Information like your business name, phone number and email address go here. The word ‘invoice’ or ‘bill’ should be clearly indicated. Otherwise, it becomes difficult for the person receiving it to differentiate it from other incoming documents.

A client may need clarification on an item on your invoice. They can easily reach you when your details are included.

2. A Date

There are two types of dates here: the due and invoice dates.

The Due Date

The invoice date is used to calculate the due date. To give an example, an invoice submitted on June 15th, 2018, with terms specifying it is due after thirty days, should be paid on July 15th, 2018. Therefore, this serves as a reminder to your clients to make timely payments.

The Invoice Date

This refers to when the document is issued and it is normally at the top. Along with the invoice number, it can be used to distinguish invoices.

3. An Invoice Number

Simply put, this uniquely identifies each invoice. Why is it so important? For one, it’s an excellent way to track payments. It also helps to properly document accounting.

Pay attention to how your invoices are numbered. Pick one sequence and stick to it, e.g. if you start with 2018/001, the next one should be 2018/002, etc. This way, you avoid having duplicate invoices, especially if you are using a manual paper-based process of preparing and sending invoices.

Clients probably have an accounting system where invoices are keyed in before being processed. If you send one with a number previously entered (duplicate), chances are your invoice will not be processed on the basis that the number has already been paid.

4. A Purchase Order Number

For faster payments, include this in your invoice because this number is unique to the job for which you were contracted.

Additionally, purchase orders are legally binding documents between you and your customer which is good for you. It is proof that you were contracted to provide the services detailed in the invoice.

Conclusion

Eliminate issues of missing dates, headers, invoice numbers and purchase order numbers by having well designed and formatted invoices. You can avoid a cash crunch by having payments processed on time. If you are not doing so already, consider using an accounting software such as FreshBooks or QuickBooks to prepare and keep track of your invoices.

Rhoda Ochieng

Written by

Freelance B2B Finance Article Writer

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