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Breaking Down Detailed Invoicing Pitfalls You Need To Avoid

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When you hear the words "breaking down," perhaps your mind springs immediately to sobbing and weeping at a tragedy. 

Not us.

Here at LUXA Enterprises, the phrase "breaking down" makes us think of breaking down detailed invoices.

We believe there are distinct advantages to investing the time in putting together detailed invoices. When communication is clear, everyone benefits. 

The Advantages of Detailed Invoices

Time and Cost Effective

Although summary invoices are simple to prepare and simple to pay, any questions you may have about the bottom line leads to e-mails and phone calls.

These, of course, are time-consuming and costly on both sides. 

Fortunately, detailed invoices eliminate most of this back-and-forth, since the information given in them often answers any questions that a summary invoice might potentially raise. 

Line-by-Line Confirmation

When you study a detailed invoice, you can go line-by-line through services rendered. 

Naming the specific tasks aids you in tracking work and maintaining accountability. 

No Surprises

We have all known the unpleasant experience of receiving bills in the mail from unexpected sources.

Even more unpleasant is when a bill is unexpectedly higher (or lower!) than anticipated with no explanation given as to why.

Therein lies the true beauty of this system: with a detailed invoice, both sides benefit from shared information, and any question or discrepancy is easily verified. 

When Invoicing Goes Wrong

Detailed invoices are the best way to keep the system from breaking down, since they keep all parties on the same page regarding services rendered.

Even detailed invoices can't solve every problem, however. Perhaps the best example of this is the call center employee who, when consulted regarding an unexpectedly high phone bill, did not seem capable of understanding the difference between $.002 and $.00002.

While situations like this one are an anomaly, they're always easier to resolve with a detailed invoice.

We Can Help

Here at LUXA, we provide outsource accounting services and we encourage you avoid detailed invoicing pitfalls by all means. 

If you have questions or comments about this, please feel free to contact usWe look forward to serving you. 

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Topics: Accounting