Issuing electronic invoices generates an average saving of between 60% and 80% per tax document. Although the savings can be significant, it is not always possible to achieve them due to the electronic invoicing system’s poor implementation.
Moreover, with technological upgrades in the frame, our electronic billing prospects are also on the verge of several upgrades. But, with extensive upgrades, you also open up different ways to make errors. These errors can potentially break your entire business model. Here we share five mistakes you could be making with your electronic billing system and how to avoid them.
Not Including a Payment Due Date
Though electronic billing itself is one of the more accurate billing systems, there can still be mistakes on the bill. Sending the bill without a payment due date will lead to a myriad of problems. If the customer doesn’t have a specific due date, the bill could never get paid. The electronic invoice should include the due date and have information such as benefits of paying early or in full and fees and penalties if paid late. The customer should be thoroughly informed on the billing date and other relevant information.
Lack of Communication
Before you ever use the electronic billing system, you should communicate billing information in two ways. You should include a thorough and well-written set of terms and conditions that will leave no room for misinterpretation or liability to the company. It would be best to verbalize the expectations when you are creating the invoice and doing the service or providing products to the customer. This communication will help with accuracy and complete understanding on the part of the customer.
Neglecting Future Billing Needs
Since electronic billing is dependent on the software, you must choose the right one from the beginning or be prepared to upgrade down the line. Don’t just choose billing software according to name brands. Choose it according to the utilities and upgrade protocols. It stands to reason that electronic billing will evolve just like all other technology and processes. It is better to put the expense into getting software that will also evolve. If you’re unable to afford software that can be upgraded as needed, be ready to buy new software in the future. Also, make sure you choose software that has features that will be timeless.
One of the most important things to consider is security. Many times invoices will have the personal information of the customer on them. Though you will be sending them electronically and not through the mail, it is still important that you be aware of what you are putting on the bill. The protection of your customer and securing their personal information should be of the utmost importance. And if the electronic billing includes anything health-related, you must follow HIPAA regulations or risk violations, which could lead to fines or termination of employment. You should also ensure that all company information is protected as well.
In addition to security on the bill itself, you should be ensuring the security of your network, the software, and the email address. Every business, large or small, should be protecting themselves from hackers and identity thieves.
Duplicate Electronic Billing
though you may be using an electronic billing system, another common error is duplicate billing. Though most software made for electronic invoicing will have built-in safeguards, not all of them do. It is important to put in the correct information in the system and follow up and run billing reports. Creating regular reports will help ensure that no one is receiving duplicate bills.
How You Can Prevent These Mistakes
To prevent these mistakes, you should first choose the right electronic billing software with features that work for your small business. You should also ensure that you run regular reports to avoid duplicate billing. When creating your electronic invoice, ensure that it includes all terms and conditions and all pertinent information, including the payment due date. And remember that every customer you are sending these to relies on you to secure their personal information and be protected from hacking or identity theft.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.