The heart of any business lies in its cash flow. It is the blood and supplement for your business growth. But do you know what ensures a super fast cash flow into the business? Invoices!

An invoicing strategy is a core need of any business, irrespective of its size, type, and industry. It may vary depending upon the business. For example, a small business which sells products might invoice daily in bulks, whereas a large enterprise dealing in services might send out fewer invoices periodically because they work on bigger projects. Daily or periodically, we all deal in invoices. But we still overlook some mistakes as contractors that we commit in our invoices.

Contractors are a critically challenging niche when it comes to the area of invoicing. We all know contractors invoice on a per-job basis followed by a lot of inconsistencies. This makes them prone to a number of mistakes leading to obstacles later on. It is always beneficial to take precautions proactively to avoid cash flow consequences later on.


Here is a list of some of the biggest Invoicing mistakes Contractors Commit:

  • Unprofessional invoices

Unprofessionalism in any sector of business is a big no-no! It not only leads to loss of clients but a bad reputation as well. In the highly competitive market today, professionalism sets you steps high.

Invoices are one of the most official communications that you send to your clients and any mistakes herein can lead to major consequences. Many of us don’t know the exact method to create an invoice. It is exactly where we make most of the mistakes.

Here is a quick guide to how you can create a perfectly professional contractor invoice:

A contractors invoice should include:

  1. Date
  2. Client’s information
  3. Billing address
  4. List of products/services
  5. Due Date
  6. Payment Details
  7. Notes

Paper invoices have become obsolete, independent contractor invoices are now created on pre-designed templates on contractor invoice software or apps.

Those pre-designed templates not only make invoicing easier but actually guide you to create professionally and aesthetically strong invoices to amp up your invoicing game.


  • Inconsistent pricing schedules

Pricing for product-based businesses is straightforward. You fix prices for each time and then you send out invoices by simply calculating volumes.

But as a contractor, you’re into service-based business and pricing is inconsistent. Such fluctuations are dependant on external factors, which you have no control over. Therefore, setting up one price will be complex. Inform your clients in advance or set up prices before every project keeping in mind the needs and demands of a particular project.

For example: While working on interiors of 2 clients, prices will change for both depending upon the area, requirements and quality demands of each.


  • Inefficient Employee Training




Half baked knowledge is dangerous! Similarly untrained or partially trained employees are when left in the battlefield to fight might not strive. When employees do not have enough training they will be prone to more errors and mistakes. If they do not know how important it is for the business to maintain consistency into the invoices, they will never focus on maintaining professionalism.

Train your employees and educate them about your business, its needs, and professionalism that you aim to thrive.


  • Inability to backup invoicing

Assume after a month one of your clients comes back to you regarding any confusion in the invoice amount, how will you clear doubts if you do not have copies of all the invoices sent?

Well just to avoid that hassle, always keep copies of invoices sent to clients. A contractor invoice app automatically saves all your contractors invoice copies in the cloud for future references.

The automation in the contractor invoice app automatically saves communication and invoices, saving you from the manual hassle.

  • Underestimating payment terms & conditions

Setting clear terms of payments and due dates is one of the first steps to ensuring timely cash flow into the business. Many contractors include just one policy for all, which is 30 days payment policy. But, understand each client is different. Therefore, set unique payment policies for all.

Include in each invoice notes for payments individually to let your client have top-of-the-mind recall of final dues.

  • Not Following Up

Your job does not end once the invoice is sent. Till the moment final dues get clear, your invoicing process is still open. The after invoice process known as follow up starts soon after 3 days of sending an invoice. It continues till the time you do not receive an invoice. It is always beneficial to send a gentle automated reminder first. In your contractor invoice app set automated payment reminders for your clients to be sent in set frequency.

An automated reminder is the most professional approach while asking for dues. Most companies around the globe are opting for it. It not only amps up your invoicing game but also leaves an impression with clients about your professionalism. Therefore, leading to quicker cash flow into the business.

Note: If you are a freelance business or do not have a registered billing address, you may use a virtual business address in your invoices to make it more professional.


Watch this video to have a Quick view of Invoicing Mistakes

How a Contractor invoice software/app helps businesses?

A contractor invoicing software like Invoicera has become the need of the hour for the contractor businesses. A contractor invoice app apart from its basic functioning of invoicing also helps you in managing your entire business activities. The app allows you to:

  1. Contractors Invoices
  2. Estimates
  3. Multi-Business Setup
  4. 3-Layered Security
  5. Custom Workflow Management
  6. Automated Billing
  7. Cash Flow management
  8. Finance Management
  9. Attach the Invoice Templates




Veronika Tondon is a business enthusiast with extensive experience in Invoicing & Payment Process. She has 6+ years of experience in Invoicera, the leading cloud-based invoicing solution as Invoicing Consultant. Sound knowledge in business process execution, offers end to end solutions for complete automation of business processes and AR/AP processes. Contact Veronica for your invoicing requirement.

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