The Stakes of Invoicing Errors Go Beyond Money — Here’s Why
“I’m only human” is an excuse people often use to justify their mistakes. ??♂?
But invoicing mistakes aren’t the kind you can afford to make when your business is at stake.
In this article, we’ll explore the consequences of invoicing errors and why processing them manually is a risk you should avoid. ??♀?
*This article is the abridged, adapted version of the blog post originally published on the Clockify blog:
Noticing a faulty invoice can send shivers down your spine
A single invoicing error can send a wave of panic, especially when employee paychecks and client relationships depend on your business’s cash flow. ??
And even the thought of receiving an angry email from your client can cause instant anxiety.
But there’s a logic to it.
According to business experts, customer loyalty has become a top business strategy for long-lasting company growth. So, you should be alarmed when the health of your client-company relationship is threatened.
After all, appearing irresponsible with your data can be enough to break up your business relationship. ??
Correcting invoicing errors may cost you a wealth of time
Put on your detective hat: A faulty invoice may actually be a sign that your billing system needs an upgrade. ??
Using paper timesheets or invoicing templates could explain billing mistakes. In that case, you’re probably:
Enter the Achilles' heel of manual invoicing.
Before you can correct an invoicing error, you first need to figure out the source of the problem. ??
Next, you need to check a month’s worth of data to verify the numbers. Only then can you create a new invoice.
That’s when reality hits — you’ve lost several hours fixing a single invoicing error. ?
Patching things up could drive your clients away
Once you spot an incorrect invoice, you could spend all of your time repairing the damage. Hence, you lose sight of other business activities. ??
领英推荐
Naturally, it takes time to pinpoint what caused the mistake, create a new invoice, and write an apology email to salvage your reputation.
Suddenly, you realize that everything else has been on hold. ??
Your determination to set things right in the invoicing department has effectively put off projects and other clients’ payments.
So, when righting wrongs, be sure to keep the rest of your business running smoothly — and your clients satisfied. ??
Waiting for your new invoice to clear may spark suspicion
You send the corrected invoice, and the client accepts it with understanding. But here’s the catch — the invoice payment date has now been postponed. ??
So, your invoicing mishap sets off a series of problems, like:
Whatever the scenario, your workers will count on you to be truthful about the seriousness of the situation. If you decide to keep things to yourself, your staff may feel insecure and begin to question your leadership.
Moral of the story: Always be transparent with your employees, or they’ll lose trust in you and eventually quit. ??
We all make mistakes, but automation can minimize them
To prevent invoicing accidents, your best bet is to counteract human error with technology. ??
Yes, that means teaming up with machines.
In this case, you’d be working with advanced invoicing software that can eliminate errors before you even open the invoice.
Take Clockify, for example. Its time tracking and invoicing options keep you from miscalculating billable hours or entering incorrect amounts on invoices. ??
Our user-friendly app allows you to easily import your staff’s time into an invoice once they’re done tracking their billable hours.
With automatically generated data, the risk of invoicing errors can be reduced to a minimum. ??