There are plenty of things you'd rather do than sit down, roll up your sleeves, and hammer out billing. Like getting a root canal, say. Or waxing your back. But billing isn't just a necessary evil. It's the lifeblood of your business. Here are five tips to help you improve billing processes and keep the cash rolling in.
1. Sign on the dotted line. All too often, business owners operate on trust. They think that presenting a contract to a client is offensive or off-putting. It's not. A contract outlines the scope of work, sets firm expectations, and holds both parties accountable.
2. Run the option. No two clients are quite alike. So let them do things their own way. By providing several payment options – like credit, check, or electronic transfer – you can make the process smoother and get paid faster.
3. Take an interest. At the bottom of your invoice, clearly outline the due date. Then, include a short statement communicating the interest charged on late payments. Three to five percent is a reasonable amount. This creates a sense of urgency for your clients, giving them an incentive to pay you on time.
4. Carry the one. Invoice calculation errors are surprisingly common. Before you send an invoice, check your math. Failing to do so could result in underpayments. Even worse, you may have to pay back any overpayments submitted by your clients.
5. Pick up the phone. If you're in business long enough, you'll have to make the dreaded collection call. When you do, be firm but polite. Sometimes your clients get stretched thin themselves. And sometimes your invoices are simply overlooked.
Collections aren't your thing? Don't sweat it. TBS Capital Funding can do it for you. AND we can turn your accounts receivable into instant cash. If you need help with invoicing, collections, or funding, just give us a call. We make the process fast and painless. Unlike waxing your back.