By Melissa R. Gardner, VP Marketing at NovoEX. Disclosure: I work at NovoEX. This applies to any invoicing tool and any bank.
Developers tend to treat invoices as admin: generate, send, forget. But your invoice is effectively an input to someone else's system. A client's finance team keys its fields into accounts payable software, and from there into a payment. Bad input, delayed output.
Here are the fields that matter most, and the bugs I see in each.
Beneficiary name
Bug: trading name on the invoice, legal name on the account, or vice versa.
Fix: use the exact name your account is registered under. Many payment systems compare names, and a mismatch can pause the payment.
Invoice number
Bug: no number, or numbers that repeat.
Fix: unique, sequential numbers. Ask clients to use it as the payment reference so you can reconcile without guessing.
Currency
Bug: amount without a currency, or a currency your account can't receive.
Fix: state the currency explicitly, and make sure the details you provide can receive it.
Payment details
Bug: one set of details for every client, regardless of how they pay.
Fix: include the details for the rail the client will use, such as SEPA for euros or SWIFT for international transfers, and label them.
Due date and terms
Bug: "Due on receipt", which finance teams often read as "next payment run".
Fix: a specific date, and payment terms agreed in the contract.
Client legal entity
Bug: invoicing a brand name rather than the entity that will pay.
Fix: ask for the legal entity name and address before the first invoice. Payments from a different company than the one invoiced can raise questions on both sides.
Transfer charges
Bug: silence, then a short payment.
Fix: one line stating who covers international transfer charges.
A pre-send checklist
- [ ] Name matches account exactly
- [ ] Unique invoice number
- [ ] Currency stated
- [ ] Correct, labelled payment details
- [ ] Specific due date
- [ ] Client legal entity correct
- [ ] Charges arrangement stated
Treat it like a lint step before you hit send.
Melissa R. Gardner, VP Marketing at NovoEX. Disclosure: I work at NovoEX. General information only, not financial advice.
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