Although many have expressed an interest in entrepreneurship, Gen Z still needs to master some of the basics of running a business.
These young people born between 1965 and 1980 have a lot to learn about invoicing, according to research published exclusively by Skynova on Yahoo Finance. According to the survey, 93% of Gen Zers have asked their parents for help writing a bill in the past, while 53% of Gen Zers didn’t know what to include on their bill.
Experts say invoicing is an essential skill for zoomers to learn as they transition into entrepreneurship or freelancing. Errors are costly and can jeopardize success.
“Common mistakes result in many invoices being paid late or not paid at all. Missing payments is especially difficult for new businesses,” said Jen Graham, software developer at Skynova. Masu. “But in the long run, these mistakes are even worse. They affect how clients see you, how they rate you, and whether they will work with you again. It could affect something.”
Overall, Zoomers isn’t the only company struggling to bill its clients. The Skynova report surveyed his 1,003 employees who have extensive experience in filling out invoices. More than half reported that they struggle most with knowing what to include on their invoice.
But Gen Z in particular has little familiarity with invoicing due to their limited work experience. The survey found that while 95% consider themselves “new to the world of invoices,” almost half have only learned what an invoice is in the past year or two. Ta.
“Most people don’t start a business thinking, ‘I want to be an invoicing expert,'” Graham says. “But for many people, it’s one of the first things they have to learn.”
Mistakes on invoices can have serious consequences for both Gen Z and their companies. On average, Gen Z loses $346 due to bill errors. Skynova’s research also found that 92% of invoicing professionals say they are less likely to continue working with a company that has a high number of invoice errors. According to Skynova, invoicing experts characterize those who submit error-filled invoices as unprofessional (60%), incompetent (59%), and inexperienced (50%).
“This isn’t just a self-esteem issue, it’s a real business issue,” says Corey Seemiller, Ph.D., a professor, researcher, and leading Gen Z expert. “Having people badmouthing you and giving you bad reviews because they don’t know how to put something down on paper is very concerning from an economic and revenue generation standpoint.”
Previous research has shown that more than half of Gen Z is interested in entrepreneurship. Meanwhile, the number of freelancers in the US increased by about 33% between 2014 and 2022. According to job site Zippia. Seemiller noted that Americans’ tendency to underestimate costs is particularly difficult for young entrepreneurs.
“If you’ve been established for a long time, you can sometimes take a hit because you underestimated costs,” she said. “But if you’re young and new and underestimate the costs, she could be out of business in five minutes if you don’t get it right.”
The study lists several ways Americans can master invoice writing. This includes using paid software, using free software, taking invoicing/bookkeeping classes, watching Youtube videos, talking to consultants, and outsourcing your invoicing.
Graham said invoice creators need to start by “establishing clarity” with customers to determine how much they will be charged.
“You need to know exactly what the fees and terms will be, and these need to match exactly with your invoice,” she said. “Changes to that contract should be made in writing before the work is completed. By the time you receive the invoice, you should already know exactly what to charge.”
Only then, she says, will Zoomers be able to generate invoices. She advised them to pay attention to details. For example, you should include your contact information and make sure the invoice due date matches your payment terms, she said.
“And don’t forget to offer one or more payment methods,” she said. “We can’t pay you if we don’t know where to pay.”
Meanwhile, Rachel Kirsch, senior data journalist and project manager on behalf of Skynova, said “practice and repetition” is key to improving invoicing skills. She also encouraged Zoomers to reach out to others for help.
“Gen Z and members of all generations can improve their invoicing skills by first seeking a mentor at their workplace who can teach them the best ways to bill,” she said. “Additionally, Gen Z employees could benefit from training on what is expected when it comes to invoicing.”
Dr. Seemiller agreed, saying that Zoomer especially welcomes mentorship and “short self-directed instructions.” She argued that zoomers prefer to learn in ways that give them a sense of ownership.
“You basically outsource your invoicing or have software do it for you, but you never really learn how to do it,” she said. “So I think what stuck with them is they want to learn how to do it from someone like a mentor, or they want to watch a video and learn how to do it themselves.”
Dylan Kroll is a reporter for Yahoo Finance.
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