10 Invoicing Mistakes to Avoid | Swiss SME Guide

Mistake #1: Forgetting mandatory information on your invoices

In Switzerland, an invoice must contain mandatory legal information to be legally valid. Yet many freelancers and small businesses regularly omit certain essential elements.

Mandatory information includes: your company's full name and address, your VAT number (if registered), the issue date, a unique invoice number, a detailed description of services or products, amounts excluding and including VAT, the VAT rate applied, and payment terms.

The consequences are multiple: your invoice can be legally challenged, you risk problems during an audit by the Federal Tax Administration (FTA), and your clients can legitimately delay payment of an incomplete invoice.

The most effective solution is to use compliant templates or, even better, invoicing software that automatically integrates all these mandatory elements with each invoice issued.

Mistake #2: Not using the QR-invoice (mandatory since 2022)

Since October 2022, orange payment slips (BVR) have officially disappeared in Switzerland. Yet some companies continue to use old formats or completely omit to integrate a QR-invoice into their documents.

The QR-invoice offers considerable advantages: your clients pay faster thanks to QR code scanning, manual entry errors are eliminated, and bank reconciliation becomes automatic. The QR code contains all the information necessary for payment.

Not using it creates confusion for your clients, who must manually enter payment references. This generates delays, increases the risk of errors, and gives an outdated image of your business.

The solution is simple: adopt an electronic invoicing system that automatically generates QR-invoices compliant with Swiss standards, with all banking references integrated.

Mistake #3: VAT calculation errors

VAT errors are among the most frequent and costly problems in invoicing. Switzerland applies several different VAT rates, which complicates calculations for the uninitiated.

Common errors include: applying the wrong rate (8.1% standard rate, 2.6% reduced rate for certain goods, 3.8% special rate for accommodation), rounding errors that accumulate, completely forgetting VAT on certain services, or double taxation on already-taxed items.

The impact can be severe: during an FTA audit, you'll need to correct all errors and potentially pay fines. Your professional credibility takes a hit, and manual corrections waste valuable time.

To avoid these pitfalls, automate your VAT calculations with software that automatically applies the current rates according to the nature of your services. Also regularly check for rate updates, which can change. Good invoicing management directly improves your business cash flow.

Mistake #4: Sending your invoices late

Invoicing timing has a direct impact on your cash flow. It's mathematical: the later you invoice, the later you get paid. Yet many entrepreneurs postpone this administrative task, creating a domino effect on their financial health.

Let's take a concrete example: if you invoice on the 5th of the month with a 30-day payment term, you get paid at the beginning of the following month. If you invoice on the 25th, you wait until the end of the following month. Three weeks of delay that can make the difference between paying your expenses on time or not.

The consequences accumulate: constantly tight cash flow, forgotten unbilled services (therefore lost), permanent financial stress, and in extreme cases, inability to pay your own suppliers.

The solution is to invoice immediately after delivery or service. Automate the sending of your invoices as soon as the work is completed, and create recurring invoices for your regular clients. These best practices radically transform your cash flow management.

Mistake #5: Vague or incomplete service descriptions

"Consulting services - CHF 2,500". This description, unfortunately too common, is an invitation to disputes and payment delays. Your client must understand exactly what they're paying for, without ambiguity.

Compare with this detailed version: "Complete SEO audit (8 hours at CHF 150/hour) - Technical site analysis, keyword research, strategic recommendations - Report delivered on 15.03.2024". The difference is obvious.

A vague description generates problems: the client disputes the invoice because they don't remember exactly what the service was, payments are delayed while clarifying, and in some cases, this can lead to costly legal disputes.

Be systematically precise: indicate exact quantities, service dates, hourly rates applied, order or quote references, and any element allowing clear identification of the service. Transparency avoids misunderstandings and strengthens client trust.

Mistake #6: Not numbering your invoices sequentially

In Switzerland, the law requires that each invoice bears a unique and sequential number. Yet some entrepreneurs use erratic numbering systems, with gaps, duplicates, or non-chronological numbers.

This legal obligation is not trivial. During a tax audit, the FTA checks the consistency of your numbering to ensure that no invoice has been concealed. Irregularities can raise suspicions of fraud, even if you're perfectly honest.

Concrete problems: difficulties during tax audits, total confusion in your invoicing tracking, inability to quickly find a specific invoice, and in serious cases, fines for non-compliance.

The ideal solution is an automated system that generates unique and chronological numbers without interruption. Each new invoice automatically receives the next number, eliminating any risk of human error.

Mistake #7: Inappropriate or absent payment terms

The absence of a clearly indicated payment term on an invoice is a surprisingly frequent error. Other companies set inappropriate terms: too long (60-90 days that damage cash flow) or too short (7 days without prior agreement, which irritates clients).

In Switzerland, the standard is 30 days net, but this term can vary depending on your industry, the size of your clients (large companies often negotiate 60 days), and your negotiating power. The important thing is to be clear from the quote stage.

Inappropriate terms create tensions: your cash flow suffers if terms are too long, your client relationships deteriorate if terms are too short, and the complete absence of terms leaves the door open to all abuses.

Define clear payment terms adapted to your business. Indicate them systematically on your quotes and invoices. For recurring clients, negotiate these terms upfront. And above all, implement a tracking system to quickly identify payment delays.

Mistake #8: Absence of a structured follow-up process

Many entrepreneurs, particularly freelancers, don't dare to follow up with their clients for unpaid invoices. Others do it in a disorganized manner, without a clear system, which harms their efficiency and credibility.

The absence of a follow-up process has direct consequences: accumulation of unpaid invoices that can jeopardize your business, constantly compromised cash flow, permanent stress related to liquidity problems, and client relationships that become strained when you finally follow up awkwardly.

A structured 3-level process is recommended: a friendly reminder at D+5 after the due date ("We haven't yet received your payment, perhaps an oversight?"), a formal follow-up at D+15 with a new copy of the invoice, and a formal notice at D+30 announcing legal measures if necessary.

Automating these reminders saves you valuable time while remaining professional. Modern invoicing systems automatically send these reminders according to your schedule, allowing you to focus on your core business. Discover the real impact of late payments on your business.

Mistake #9: Sending invoices in the wrong format or to the wrong contact

This mistake seems trivial, but it generates considerable payment delays. Common problems include: sending non-standard PDFs that some accounting systems cannot process, sending to the wrong person or department, and using paper format when the client has clearly requested electronic invoicing.

The consequences are frustrating: your invoices get lost in the administrative maze of large companies, processing is delayed because the invoice must be transferred to the right department, and your client is irritated at having to call you back to receive the correct format.

The solution is simple but often neglected: systematically confirm each client's preferences. Ask for the exact name of the recipient, their email address, the preferred format, and any references to include to facilitate processing.

Use standard formats like PDF, universally recognized. And for regular clients, integrate these preferences into your system so you don't have to think about it anymore. Automated invoicing significantly improves your customer relationships.

Mistake #10: Managing your invoicing manually (Excel, Word...)

We come to the mistake that often encompasses all the others: manual invoicing management with Excel, Word, Canva, or even paper documents. This artisanal approach accumulates all the risks.

The dangers of manual management are multiple: inevitable human errors in calculations and data entry, considerable time loss (several hours per month), absence of centralized payment tracking, no easily accessible history, difficulties generating reports to manage your business, and frequent oversights of invoices or reminders.

Do the math: if you spend 5 hours per month on manual invoicing, that's 60 hours per year. At an hourly rate of CHF 100, you're losing CHF 6,000 of billable time. Not counting errors, payment delays, and the stress generated.

The solution is to adopt invoicing software that automates creation, sending, tracking, and reconciliation. These systems eliminate errors, save you valuable time, and give you real-time visibility on your cash flow. The investment typically pays for itself within a few months.

How BePaid helps you avoid all these mistakes

BePaid was designed specifically to eliminate these 10 invoicing mistakes that cost Swiss SMEs and freelancers so dearly. Our platform automates the entire process, from creation to reconciliation.

Automatic compliance: each invoice generated automatically includes all mandatory Swiss information, with a QR-invoice compliant with current standards. Sequential numbering is managed automatically, without your intervention.

Accurate and reliable calculations: VAT rates are automatically applied according to the nature of your services, with always accurate calculations. No more rounding errors, no more doubts about which rate to apply.

Massive time savings: create an invoice in less than 2 minutes thanks to our customizable templates. Sending is automatic, reminders too. You recover precious hours each month to focus on your core business.

Real-time tracking: instantly visualize which invoices are paid, pending, or overdue. Automatic bank reconciliation updates your statuses without manual intervention. Your cash flow reports are generated automatically.

BePaid transforms invoicing from an error-prone administrative chore into a smooth, reliable process compliant with Swiss requirements. Your invoicing becomes an asset for your business rather than a burden.