Problems in invoicing and how to overcome them

Updated on: Oct 14th, 2021 - 8:51:59 AM

4 min read

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Invoicing problems can have a significant impact on the working capital of a business. Errors are relatively common especially in businesses that use the manual system of invoicing.

Through the digitisation of the invoicing process, the majority of the problems can be resolved. Today, there are various invoicing tools and software available for businesses to use.

  • Missing Invoices

If the invoice is not addressed to the right recipient in the organisation along with the correct GSTIN, there is very little chance of the payment being received. Moreover, tracking invoices that have a 30-day or a 45-day payment period becomes difficult, since there is no acknowledgement of the invoice being received. This leads to a delay in communication as well, and it may be long before one realises that this is a case of missing invoices.

However, the benefit of invoicing software is that the tracking and updating is all done through the software itself through a master list. The risk of addressing it to the wrong person is eliminated since the email ID is entered in and validated, assuring the information is conveyed to the right person.

Once the invoice is viewed, the intimation is also made aware of the sender. Automation allows you to be nudged when an invoice has remained unopened for a long time after sending it to the customer.

  • Lack of clarity in invoices

Businesses that possess the manual system of billing and invoicing often lack a sense of professionalism in the language and format of their invoices, especially where the business provides multiple products and services.

Invoicing software such as ClearOne possess various invoice templates best suited to your needs that are both sleek as well as professional. This helps provide clarity and better understanding to the viewer, thus speeding up the approval process. ClearOne invoicing software provides various options to choose from many professional invoice templates.

  • Incomplete invoices

In small businesses, since there is limited manpower and no segregation of duties, the employees end up performing multiple functions and roles. Therefore, any lack of attention to detail in the invoicing process leads to potential errors. Incomplete data in an invoice is one such problem.

Providing the bank account number but forgetting to add the bank IFSC Code is a classic example. Another couple of examples are the use of “due on receipt” as the term for payment, and cases where the Purchase Order number is not mentioned. This could cause potential issues with the payment being processed on time.

While preparing the invoice in ClearOne, the payment details field of the invoice has to be filled in. The software, by marking the fields mandatory and validating it, will not proceed unless you enter in the details. This ensures that the invoice is complete in all respects, thus eliminating the potential for error.

  • Error-laden invoices

Incorrect calculations, missing due date for payment, lack of description of goods or services provided, etc are very common errors while invoicing manually. However, this does not bode well for the business, since the invoice is a reflection of how professional and meticulous the business is.

Invoicing software today, mainly ClearOne invoicing, is capable of performing all the basic arithmetical functions and validates invoice details in line with the GST regulations. They also help identify any fields that are left vacant, giving you the option to key in the Purchase Order number if necessary, thus reducing the errors in the invoice.

  • Incorrect contact information

Small businesses do not normally face any issue with contact information since they will have one or two people who are to be addressed for all things concerned. However, in large organisations, where thousands of employees are present, there are various departments for specific functions.

Therefore, it is vital that the invoices are addressed to the right person. Failure to do this would result in the invoices being discarded or ending up in the “lost pile”, thus never reaching the intended recipient.

However, with the help of invoicing software, contact information such as email IDs and addresses can be stored with ease, thus ensuring the invoices are shared with the intended recipient with a simple click of the mouse.


Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

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