Invoice integrity is paramount in operating a successful business. The benefits in knowing your invoices have been raised and forwarded correctly provide many positives for your business. After all, the best way to lose money is to raise invoices which provide your customers with an excuse to slow pay or not pay.
Therefore when I talk about invoice integrity, I am talking about raising an invoice correctly and sending it as required by the customer. So what is invoice integrity?
In order to be paid as quickly as possible, the invoice must have (i) all the evidence of correctly suppling the products and services ordered, (ii) valid authorisation details displayed, (iii) correct prices quoted and (iv) with the correct payment terms confirmed. Finally, the invoice must be sent or submitted in the manner specified by the customer. If any of this information is missing or not completed correctly, then the customer is under no obligation to pay. Harsh as this may sound, it is the inconvenient truth.
If your customers pay in a timely manner on most occasions, and you have a validation process on following up on unpaid invoices, three key benefits are obvious. First, you have reduced costs in chasing up unpaid invoices. Secondly, cashflow budgets can be framed more accurately. Third, if you require finance, if the financier has confidence in your cashflow stream which is evidenced by accurate cashflow budgets, you are more likely to obtain the finance.
When invoices are raised without integrity, customers will generally respond in one of two ways. First, they delay paying because you have just provided them with an excuse to delay payment. Secondly, because these invoices cause work and disruption to their business, they stop buying.
Invoice integrity costs little to do correctly. It costs a lot when there is little integrity in how your invoices are raised.
If you would like to know more about invoice integrity, contact Kim Radok at firstname.lastname@example.org