The 7 most common billing mistakes

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Invoicing is one of the fundamental pillars of any business. Not only is it essential for maintaining stability and meeting tax obligations, but it's also an area where many mistakes are made that can have both financial and legal repercussions.

With the entry into force of the new tax legislation in Spain: the Anti-Fraud Law and the Create and Grow Law, proper invoicing management has become more crucial than ever.

In this article, we'll explain the 7 most common invoicing mistakes made by freelancers and SMEs (small and medium-sized businesses). So you'll know what they are and avoid making them again.

1. Omission of data or incorrect data

One of the most common errors in the invoicing process is the omission of relevant information or the entry of incorrect data. Each invoice must contain accurate information about the customer and the transaction. Required information includes:

• Name or business name of the client.
• Tax address
• Invoice concept
• Payment method
• Customer's tax identification number (NIF).

Using standardized templates or professional invoicing software can prevent these errors, as they typically include required fields that must be completed before the invoice is issued.

2. Lack of sequential numbering

Sequential numbering is another key aspect of the invoicing process. According to Article 3 of the Invoicing Regulations (Royal Decree 1619/2012), invoices must be numbered sequentially, meaning there cannot be any gaps or repetitions in the number sequence.

Skipping numbering or altering the order of invoices is a regulatory breach that may lead to sanctions .

3. Incorrect or manipulated dates

Manipulating invoice issue or due dates is a fraudulent practice used to modify the tax period for which taxes are settled, especially VAT.

This practice is punishable by law, and the consequences can be severe. It is important that the dates be accurate and not altered.

4. Errors in tax calculation

One of the biggest mistakes a business owner can make is miscalculating taxes , such as VAT or personal income tax.

Invoices must accurately reflect the amounts due in accordance with current tax regulations. An error in this calculation can result in penalties or even a tax audit .

Using InnoTaxes' billing software , certified and updated according to current laws, can help you avoid these errors.

5. Incorrect calculations in the total invoice.

Using spreadsheets like Excel to generate invoices can increase the possibility of calculation errors.

An incorrect formula or incorrectly entered data can alter the invoice total , which can result in a discrepancy between what the customer owes and what they are billed.

6. Forgetting to invoice delivery notes

A delivery note is a document used to record the delivery of products or the provision of services.

However, these delivery notes are often forgotten to be converted into invoices , which can lead to lost revenue and customer reconciliation issues.

If billing is not well organized, a sale recorded on the delivery note could be delayed because the invoice was not issued on time .

7. Poorly presented invoices

Presenting an invoice is crucial not only from a professional perspective, but also from a legal perspective.

A poorly structured invoice , lacking the correct information or with a disorganized format, can raise questions or even be rejected . Proper presentation must comply with all legal requirements established by the General Tax Law .

Conclusion: Optimize your billing and avoid tax problems

Billing, although often underestimated, is one of the most important functions for the success and sustainability of any business.

To avoid common billing errors and their legal consequences, it's very important to stay up-to-date with tax regulations.

With the entry into force of laws such as the Anti-Fraud Law and the Create and Grow Law , proper invoice management will become even more important, not only to avoid penalties but also to improve the efficiency of your business.

Remember, invoicing isn't just an administrative task; it's a strategic tool that can directly impact your company's financial health. That's why at InnoTaxes, we're here to help with any tax issues or assistance you may have.

Contact us if you have any questions or send us a WhatsApp message , and we'll help you in detail.