What is the best way to handle changes to an invoice after it has been sent?

2 Choose the right format

Depending on the nature and extent of the change, you may need to choose between different formats for your revised invoice. The most common ones are credit notes, which reduce the amount of the original invoice due to a refund, discount, or cancellation; debit notes, which increase the amount of the original invoice due to an error, extra charge, or late fee; and replacement invoices, which replace the original invoice entirely with the correct amount and details. Each document has a unique reference number and should be sent along with the original invoice. Additionally, you should keep a copy of each document for your records.

3 Update your accounting system

Once you have sent the revised invoice, you should also update your accounting system accordingly. This means that you should record the change in your income statement, balance sheet, and cash flow statement, as well as in your accounts receivable and payable. You should also adjust your tax calculations and reporting, if applicable. By doing this, you can ensure that your financial records are accurate and consistent, and that you comply with the relevant accounting standards and regulations.

4 Follow up with your client

After you have sent the revised invoice, you should also follow up with your client to make sure that they have received it, understood it, and agreed to it. You should also confirm the payment date and method, and remind them of any penalties or incentives for early or late payment. You should also thank them for their cooperation and understanding, and offer them any assistance or clarification if needed. By doing this, you can foster a positive and long-term relationship with your client, and increase your chances of getting paid on time and in full.

5 Learn from your experience

Finally, you should learn from your experience of changing an invoice and try to prevent the need for it in the future. Review your invoicing process and identify any areas that need improvement, such as creating clear and detailed contracts and proposals, checking and verifying invoice data, using reliable and secure invoicing software, and soliciting feedback from your client and team. If you follow these tips, you can handle changes to an invoice in a professional manner and improve your accounting skills and reputation.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?