6 Tips to Help Your Billing Process

When running a company, it’s important you properly invoice your customers so you get paid on time. Here are six tips for streamlining your billing process.

Ensure Signed Contracts

Don’t conduct business until you have a signed contract. The contract should state the terms the parties agreed to during the negotiation process. For example, the specific level of service, costs, payment terms, obligation limits, process for changes or addendums, and the requirement for keeping all information confidential should be included in the contract.

Create Invoices

Ensure your invoices have the proper information so you get paid on time. Each invoice needs a number so you can track it through an Excel spreadsheet, online software or other method. Release your invoices in sequential order so you can reference an invoice if calling a client who hasn’t paid on time. On each invoice, include the client’s name, company name and company address along with your name, your company, your business address and phone number. State the title of the project/service, itemized costs, subtotal, sales tax amount, total due and payment due date. You may decide to add additional comments as well, such as details about a phone call involving the order.

Offer Incentive for Prepaying Invoices

Because you need money coming in as soon as possible, provide an incentive for early payment. For example, you may allow a 1{6bd1320fad0225b73419489885d9216cc63ec6032ce46094a890a203ea61fd48}-2%reduction in the amount owed if the invoice is paid within a set time before the due date. Everyone enjoys receiving discounts, plus you’re rewarding customer loyalty.

Establish Payment Options/Penalties

Ensure you state payment options for customers having difficulty paying and penalties for nonpayment. Establish a late fee and interest rate to be added to each invoice that isn’t paid on time. This adds urgency to having your customers pay their invoices before they’re due. When resending overdue invoices, add on and reference late fees and interest charges so customers know why they owe more money. Also, encourage customers to contact you and set up a payment plan if they’re having difficulty paying on time. It’s better you get paid over an extended time period than not at all.

Use Manners

Be respectful on your invoices. Thank your customers for their business. Show them your appreciation for working with you. You’re more likely to be paid on time.

Send Invoices

Send your invoices on the same date or around the same time each month. Your customers will know when to expect them and be better equipped for budgeting the money needed to pay you.

Ensuring your invoices get paid on time can be stressful. For help with this or other back-office processes, reach out to the experts at USA Staffing Services today!