5 common billing mistakes

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Mistakes are inevitable. When issuing invoices, they are bound to happen from time to time. What are the most common billing errors? How can you avoid billing errors? What consequences can they have? If you want to know the answers to these questions, read our article on 5 common billing mistakes.

5 Common Billing Mistakes – Table of Contents
Incorrect invoice number
Incorrect counterparty data
No information about payment method
Incorrect description of goods or services
Billing errors
Summary
See how to issue invoices with Firmbee
5 common billing mistakes
Incorrect invoice number
Each invoice should have a unique number. This is something obvious, but in some situations, it is easy to make such invoicing mistakes. This is especially true if you use programs such as Word or Excel or their argentina whatsapp number database to issue invoices. At first glance, it may seem that this will make your invoicing work easier. In such programs, you can prepare ready-made invoice templates, in which you only need to change the data when issuing subsequent documents. But this solution has a big drawback.

Overwriting subsequent files can cause you to lose track of numbering. And saving invoices as successive pages in a Word document or successive sheets in Excel can also lead to inaccuracies.

What are the most common billing errors in invoice numbering? There are two types: duplicate invoice numbers and numbering gaps. Both of these billing errors can have unpleasant consequences when tax authorities check them. Numbering that contains gaps may indicate that not all invoices issued are included in the tax calculations. Numbering gaps will raise serious questions even if they are accidental and not intended to mislead tax authorities.

The second type of error, i.e. two or more invoices with the same number but different content, may also suggest that they were issued this way deliberately to avoid taxes. In this case, there may also be a problem with the posting of such invoices, because the accounting software may not allow you to enter two or more documents with the same number.

Correcting such oversights may not be easy, especially if you have already sent such erroneous invoices to your clients and only later realized that they had the wrong numbering. They don’t matter much to your contractors, because they don’t check the correct numbering of their invoices. Therefore, they can pay such invoices without any problems. But in case of a tax audit, you may be penalized for it. That’s why it’s better to prevent them, for example, by using an invoicing program or application where the numbering will be assigned automatically. This way, you will avoid invoicing errors and be sure that you haven’t issued invoices with wrong numbers.

Incorrect counterparty data
We’re only human, and we all make mistakes from time to time. It could be a typo in the name of the company you invoiced or a misspelling of your client’s name. Another common mistake is the wrong address for the contractor. In this case, there could be a variety of errors: the wrong building number, the wrong zip code, the wrong street name, or even the misspelled city of the company’s headquarters. You could also write your client’s tax ID number incorrectly on the invoice.