5 Invoicing Errors That UK Business Should Avoid
A popular bank has put forward a survey which states that almost 48% of small businesses in the UK are struggling with late payments. This suggests that there must be an issue with the invoices that are being sent by the suppliers and the service providers to the recipients of the products and the services. But one also has to try and analyze whether there are any inherent problems in the way an invoice is drafted.
Are the people drafting the invoices committing any mistake? If not, are they following the right VAT invoice template? So what are the mistakes that people are committing when drafting invoices and what mistakes they must avoid. Here are 5 invoicing errors that UK businesses should avoid:
1. Addressing Name In The Invoice
At times silly mistakes can cost you very much so whenever you are drafting the invoice, it is important that someone overlooks the drafts after the initial draft has been made. That’s because a lot of times people make mistakes in stating the name of the product buyer or the service receiver. This is a very common mistake that can happen due to multiple reasons but needs to be avoided at any cost.
2. Add Clear Description Of The Invoices
It is also essential that one adds the description in the invoices related to when the product was purchased and what was the quantity. At times, in outsourcing resources, the invoices could contain errors in stating the responsibility of the resource or their designation in proper. Also at times, people do not follow the right VAT invoice template for adding the description which is a mistake that needs to be avoided.
3. Stating The Incorrect Price
One mistake that can heavily cost a company a lot of businesses is if they are making errors in stating the correct price in the invoice. When drafting the invoice, it is essential that you outline it before filling the draft in detail. So here you need to first place the correct price and then recheck if you have stated the correct price everywhere in the draft.
4. Documenting VAT Errors
Late payments are a big problem in the UK because people often make VAT errors when documenting the invoices. A lot of times, the VAT rate of a company may differ from the other companies. The client may have a generalized idea, so it is always best that you inform them about your VAT rate in advance.
5. Excluding Information Of The Payment
It is essential when drafting an invoice that you state the payment information and do not exclude any single information. Starting from the amount it be paid, you also need to include information regarding the payment mode. At times, it is also safe to include the bank details along with the tax for the product and the service. Make sure you also include preferred payment mode.
You must closely follow a VAT invoice template, so that you refrain from making any silly mistakes in the invoice. Also, if you need any extra assistance in drafting invoices, it’s the safest choice to check services of a Invoicing company.
