{"id":2702,"date":"2017-10-06T14:26:56","date_gmt":"2017-10-06T18:26:56","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=2702"},"modified":"2026-02-12T05:36:42","modified_gmt":"2026-02-12T10:36:42","slug":"6-common-invoicing-mistakes-to-avoid","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/6-common-invoicing-mistakes-to-avoid\/","title":{"rendered":"6 costly invoice mistakes small business owners make when trying to get paid"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tMoney Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\t6 costly invoice mistakes small business owners make when trying to get paid\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tJohanna Brown-Lyons<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t<\/div>\n\t\t<\/div>\n\n\n\n

According to research<\/a>, running a startup or small business can be more stressful than maintaining relationships, personal finances, and even raising children. Whether you\u2019re a solopreneur that wears every hat in the business, or have a part-time business partner, you likely have cash flow top of mind.<\/p>\n\n\n\n

Many business owners have so much to do in a day that they don\u2019t prioritize their financial and administrative tasks the way they should. But, the difference between a business that thrives and one that fails is cash flow.<\/p>\n\n\n\n

The first step to getting money into your business and being paid accurately and on time is by creating and submitting a proper invoice<\/a>.<\/p>\n\n\n\n

Here are six common invoice mistakes to avoid:<\/p>\n\n\n\n

Mistake #1: Not having an invoice template<\/strong><\/h2>\n\n\n\n

An invoice is a standard document to request payment for services. Depending on your services, it should include a reference number, name and contact details, dates of services, date of invoice, description of product(s), unit prices of product(s) if relevant, purchase order number, total amount charged, taxes, credit terms and payment terms. This eliminates confusion between the buyer and seller.<\/p>\n\n\n\n

Add your professionally designed logo to one of our \n\n\tfree invoice templates<\/a>\n and every invoice you send will be consistent.<\/p>\n\n\n\n

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Free Invoice Templates<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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Free invoice templates, designed for you in mind.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tDownload now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t

\n\t\t\t\t\t\n\t\t\t\t\t24,386 readers have downloaded these templates\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n\n\n

Mistake #2: Not setting payment terms<\/strong><\/h2>\n\n\n\n

Payment terms clarify the amount of time the buyer has to pay for services, and they may also include provisions such as if cash is required in advance, or upon delivery. Sometimes, sellers offer a discount if paid before the due date, or add fees if paid after the due date. Clearly defined, easy to understand payment terms<\/a> will help your cash flow. Keep your payment terms short, e.g., two weeks, and put the exact date on the invoice if you want to get the cash quickly. Terms such as \u201cnet 30\u201d or \u201cupon receipt\u201d can be confusing for the general public.<\/p>\n\n\n\n

Mistake #3: Not having the appropriate contact person<\/strong><\/h2>\n\n\n\n

Your buyer may not be the proper person to list on the invoice as the person of contact. Nine times out of ten it\u2019s your point of contact is someone in the legal or finance department of that business. Make sure you find out who the invoice should be addressed to before sending it out.<\/p>\n\n\n\n

Mistake #4: Not backing up the original file<\/strong><\/h2>\n\n\n\n

Forgetting to back up the original file is another common mistake. This mistake may be a surprise, but many people send off an invoice without thinking to save it \u2013 either to the cloud or an external drive. Keep an extra copy saved in case your computer crashes or your business is impacted by a natural disaster\u2026 you never know when you may be audited or have to make changes to it.<\/p>\n\n\n\n

Mistake #5: Leaving out essential details on your invoice or making mistakes<\/strong><\/h2>\n\n\n\n

Leaving out critical details during the initial send to your customer could delay payment. Make sure your invoice includes all of the pertinent details listed in #1 above and our how to write an invoice<\/a> article. The invoice template will help you with this.<\/p>\n\n\n\n

Check the invoice several times before you send it. Ensure the dates are correct, the services rendered are there, and there are no spelling mistakes. All of these are very costly mistakes. <\/strong><\/p>\n\n\n\n

Mistake #6: Not setting a due date<\/strong><\/h2>\n\n\n\n

According to a Wall Street Journal survey, 64 percent of small businesses have unpaid invoices more than 60 days old and 20 percent say the problem is worsening. Setting a due date and having clear payment terms will ensure that your unpaid invoices are resolved on time.<\/p>\n\n\n\n

Avoid these common mistakes and download one of our three free invoice templates.<\/p>\n\n\n\n

Our \n\n\tfree invoice templates<\/a>\n are designed to impress your clients, clearly communicate your payment terms and \u2013 most importantly \u2013 make sure you get paid on time.<\/p>\n\n\n\n

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Free Invoice Templates<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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Free invoice templates, designed for you in mind.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tDownload now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t

\n\t\t\t\t\t\n\t\t\t\t\t24,386 readers have downloaded these templates\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n\n
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Subscribe to the Sage Advice Small Business Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tSubscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

According to research, running a startup or small business can be more stressful than maintaining relationships, personal finances, and even raising children. Whether you\u2019re a solopreneur that wears every hat in the business, or have a part-time business partner, you likely have cash flow top of mind. Many business owners have so much to do […]<\/p>\n","protected":false},"author":795,"featured_media":2742,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[43],"tags":[152,155],"business_type":[40],"lilypad":[],"context":[102],"industry":[56,58,55,54,59],"persona":[96,97,95],"imagine_tag":[230,231],"coauthors":[645],"class_list":["post-2702","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-starting-a-business","tag-staying-competitive","business_type-small-business","industry-ecommerce","industry-nonprofit","industry-professional-services","industry-retail","industry-travel-hospitality"],"sage_meta":{"region":"en-us","author_name":"Johanna Brown-Lyons","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2017\/10\/smallbusinessinvoicemistakes.jpg","imagine_tags":{"230":"Small business","231":"Start up business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/2702","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/795"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=2702"}],"version-history":[{"count":1,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/2702\/revisions"}],"predecessor-version":[{"id":35404,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/2702\/revisions\/35404"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/2742"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=2702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=2702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=2702"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=2702"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=2702"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=2702"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=2702"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=2702"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=2702"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=2702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}