Even if your business is doing excellent work, having dedicated teams, and serving a large group of happy customers, incoming bills could be a problem.
Invoices are fundamental for a company. The process requires timeliness and accuracy. A figure here and there, and you would not receive timely payment for the products or services. At least to say, it impacts cash flow. When you are unpaid, you cannot pay your employees and cover overheads.
Erroneous incoming bills can stir up suspicion in customers about the business. Repeated errors may raise red flags too.
However, the only saving grace is that you can take steps to reduce errors and instill confidence in your customers.
Incoming Bill Issues with Solutions
#1: Missing Bills
If the bills are not reaching the intended recipients, they would never get paid. If you use net 30 terms of payment with customers, and you do not receive auto confirmations, you may not even realize that a bill is missing. This impacts cash flow significantly.
To avoid such a problem, use financial software that automatically tracks incoming bills and sends them to the desk of the right person in the accounts payable department. Monite incoming billing software also alerts when an invoice is opened and seen. Ensure the email address is correct and checked regularly.
#2: Confusing Bills
The language on bills should be clear to customers when they view the message through different lenses. This often creates confusion over bills, and it is typically problematic if you sell multiple products and different services to one customer, and bill them multiple times.
To circumvent such an issue, make sure the billing language, as well as the format, matches the actual purchase order, job quote, and other documentation to provide descriptions. By creating legible and understandable invoices, the process of approval becomes smoother as the accounting department, as well as the approver, understands the purpose of the transaction.
#3: Missing Data
To make sure bills are paid in due time, without any human intervention, they should be accurate. When customers need data to process invoices but don’t find it, there is a high chance of the payment getting stuck somewhere until someone addresses the problem.
Maintaining consistent and updated data across the system is critical. As a result, we have ERP to bring things together. The automated systems must flag such issues, or you may review them manually to make sure all the fields are filled in logically with relevant information.
#4: Billing Errors
To err is human. You may forget to itemize services your team performed, or perhaps did not realize the customer requested a printed purchase order on a bill. You may have charged a person twice for a product or a service, or maybe you added a decimal point in its wrong place. Sounds like minute errors, but could mean big – turning a $5,000.00 worth of service into an obligation of $50,000.
You can reduce or simply eliminate such billing errors with an automated financial platform that does the calculation, sends alerts when a field is vacant and incorporates requirements specific to customers, such as PO number. If you manage invoices manually, double-check the calculation and make sure all the fields are filled out before you send the bill.
Whether you made invoice mistakes or not, having an automated system is always helpful. Monite offers the finest invoice software to make your job easy and effortless.