Invoices are an essential part of a company’s bookkeeping. In addition to the function as legal proof of a commercial transaction, they also serve as proof of the proper management of a company and the assertion of tax deductions. However, their validity can be voided if some of the mistakes listed below are made.
1.-Send it without verification
In addition to recording all legally required formal data (invoice number, date, tax data of the issuer, concept, individual amount, VAT and income tax share…) you should check the document before sending it. Sometimes they are created on the basis of a previous similar document and we forget to change basic data such as the date of issue or the concept. Therefore, it is advisable not to take this job lightly and double-check the content of the new invoice and all the concepts, even if you think you know them by heart and have standardized the process using templates.
Even though we know that the smooth running of our business depends to a large extent on the collection of invoices, it sometimes happens that we postpone issuing them due to lack of time or laziness. However, the sooner you deal with it, the better. Not only because you avoid possible oversights, but also because the sooner you issue it, the sooner you get paid.
Regarding the deadline from which you must issue an invoice if you provide a service or deliver a product, the tax office generally stipulates that “if the recipient of the service is an entrepreneur or freelancer, the invoice must be submitted before the 16th of the month that follows the month in which the tax corresponding to the aforesaid operation arose, including the summary invoices. The delivery period is one month from the date of issue.
3.-Omit the expiration date and payment method
It is advisable to indicate in the invoice the terms of payment and to clarify the maximum expiry date of the same. That is, the deadline that you give your customer for payment. Providing this information is not mandatory, but it is used to avoid late payment or to warn you if it occurs.
In a post by blueind On the other hand, remember that this date “that we observe on many occasions in invoices, even scheduled for 90, 120 days or more, by law (in particular Law 15/2010 on Late Payments) stipulates that it be so should be set to a maximum of 60 days 60 days from receipt of the goods or provision of the service Even if nothing is stated on the invoice or there is no agreement between the two parties, the standard period is 30 days.
4.-Do not keep a copy of the invoice
It is always advisable to keep all invoices and receipts that are produced as part of your commercial or professional activity. In any case, it’s not an option either. The tax authority reminds business people and freelancers of “the obligation to issue and deliver replacement invoices or documents and to keep the invoices, documents and receipts related to their tax obligations”.
As for thatthe deadlines The agency clarifies: “If the invoices received or issued relate to purchases for which VAT quotas have been borne, the deduction of which is subject to a regularization period, they must be kept during their corresponding regularization period and the next four years“.
If you are self-employed and even if you don’t have to declare VAT, you should also keep it for the same period in case the Treasury inspects you. Their storage also serves to assert payment defaults or returns.
5.- Send the invoice to the wrong person or department
This mistake has never been minor, but now, with the tightening of data protection law, it becomes even more serious, requiring you to pay close attention to sending the invoice to the appropriate person, department, or customer. However, if this ever happens to you, don’t forget to apologize and assure the customer of the confidentiality of their information.
6.- Omit the logo
Of course, this is an optional element, since not all companies, let alone professionals, have a company logo. But if you have it, it should be included in the bill, as it improves the image of the company’s professionalism and seriousness. Although it seems like an insignificant detail, it is not.
7.-Adding previously non-negotiated fees
If you want to surprise your customer with an invoice, don’t do it, e.g. B. with an unexpected discount. However, if you surprise them with a higher amount than expected, not only might it mean that this is the only way to bill that customer, but you also risk a default or claim, regardless of the reputational damage. To avoid misunderstandings, it is important that the terms of each sale are clear between both parties before the invoice is issued.
8.- Not keeping track of unpaid bills
Without insisting too much, at least until the agreed time is up, it is important to be aware of the outstanding bills so that they do not pile up. So if you find that the expiration date has passed, don’t be afraid to remind your customer to pay.
9.-Forget the comments section
According to Blueindic, “While it is not mandatory to state this on an invoice, it is very interesting to put these concepts in writing, which need to be clear to both parties. For this purpose, it is always advisable to have a “Remarks” section in the invoice document. Remember that the validity of the document entails obligations for both parties, so it is interesting that every agreement you have with your client is reflected in the document.”
10.-Don’t say thank you when paying
Notifying you that you have received the amount and thanking the customer for the payment is a detail that costs little but is always appreciated.