Your invoicing management has to be handled accurately and timely.
Invoice management deals with handling of financial and delivery transactions between your organization and your suppliers or vendors. This part of your accounting may not be as easy as it sounds. It can be really tricky especially if you have different locations with various vendors.
This only means that your staff has to manage different sets of invoices for each location. As for many businesses, acquiring outsource invoicing services is a viable solution to improve the efficiency and productivity of their accounting department.
Six common invoicing problems
Your invoicing management has to be handled accurately and timely. If this process is not done right, the consequences are – you won’t get paid or you will be paid late for your products or services. We all know that late payments and unpaid invoices will greatly impact your cash flow.
Here we have listed six common invoicing problems to be aware of and avoid future complications:
Wrong or missing contact information
In most cases, organizations have specific email boxes or staff that manages all incoming invoices. For larger companies, they often have several staff that handles invoices across their various departments.
If your invoices are not sent to the correct recipient, chances are that it may be in your lost pile of invoices that will never be paid.
Missing data
One perfect example for this is when companies use “upon receipt” rather than specifically stating when the exact due date is.
Remember that if you want to get paid on time, you have to include accurate information on your invoices.
Confusing invoice
Sometimes confusing invoices happen when you have multiple products and services. Another cause for confusion is when your invoicing language and format is not organized, or if you use different Purchase Order (PO) numbers.
Errors in invoice
Errors in invoices may occur in different ways. Your staff may put the wrong price for specific products or services or forget to outline the services your company has performed. It can go from a simple typographical error to incorrect invoicing that will cause delayed remittances.
Repetitive invoice mistakes
Recurring invoice mistakes have great impacts on your customer base as it often leads to mistrust. Reprocessing incorrect invoices will take up more time for both your staff and clients.
Even if these repetitive errors are unintentional, it will still negatively affect your relationship with your clients.
Why should you outsource your invoicing?
How often does your organization deal with delayed payments? Are you having a hard time clearing out all your pile of invoice processing backlogs? If your business has been committing the same mistakes as we have discussed above, then it is possibly the perfect time to outsource your invoicing.
Outsourcing this part of your business helps you to streamline your invoice processing while reducing your costs. On top of that, you will not have to worry about making the same mistakes over and over.
