Common Invoicing Mistakes To Avoid as a Freelancer
After delivering a boat load of designs and completing an especially tough design project, the last thing on your mind as a designer is probably spending another intense minute working up an invoice. It can get tiring, but having a pristine, error free invoice is super important, especially if you want to avoid cashflow interruptions.
Here are some of the most common invoicing mistakes we’ve noted from studying over 180,000 invoices;
Late Invoices
Late invoices usually correspond with missed project deadlines, and those are okay. There’s usually an understanding between the freelancer and the client. But what happens if you invoice late when the client expects your invoice early? There will be a setback in payment depending on the payment methods and arrangement. For example, if a client can only pay at specific times a month, sending an invoice late could mean your payment is delayed an entire cycle. This is bad for morale and may also upend your client’s payment schedules.
Wrong Invoice Destination
Invoicing the wrong customer is not as common as some other mistakes on the list, but it is common enough and can have some really big consequences if made. Not only does this hurt your brand’s reputation or how you might be perceived relative to work, it can also create a legal dilemma if private/sensitive information about the contract is disclosed to a third party. Always ensure to double check the invoice destination and client details before hitting the send button on your invoices.
Incorrect or Missing Information
This is perhaps the most common mistake on the list. Errors can range from miscalculations, wrong Tax IDs, to missing information like personal address details. These typically lead to payment disputes, which causes delayed payments and may discredit you as a freelancer.
It’s important to verify all the vital information before sending your invoice. Sometimes, there might be information in your bank details that don’t show up in invoices but will affect transactions if incorrect or outdated. For example, if you changed your home address and input the updated address in your invoice but did not update it at your bank, payment may be delayed or canceled while the bank tries to verify the information.
Manual Invoicing
Doing your invoices manually may not necessarily be a mistake, but the process is time and resource consuming, which makes it prone to errors. Some businesses or freelancers use this method hoping to reduce cost. Fortunately, there are free invoicing software like PayoutPartner that are easy to use and designed to help you make zero invoicing mistakes.
Key Take Away
Invoicing as a freelancer is an important aspect of your business, and avoiding mistakes that can delay payments or harm your reputation should be something to consider.
To reduce the risk of making mistakes in your invoices, use a good invoicing software like PayoutPartner that is designed to help your business and freelance career grow.
How PayoutPartner Helps You Avoid these mistakes
- The PayoutPartner invoicing software has a simplified invoicing process that offers professional invoice templates. Say goodbye to manually creating invoices.
- PayoutPartner invoicing software is free to use with no added charges.
- Invoice multiple clients and keep track of all your invoices, this helps you avoid sending the wrong invoice to the wrong client.
- With PayoutPartner, you can invoice international clients as well as local businesses.
- Set up recurring invoices; this is a great feature that ensures you don’t have to repeat invoices, which is great for avoiding errors. Please ensure to update the recurring invoice every time there's an important information update from your bank or client details.
If you want to learn how to create a successful invoice check here.