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Timely Billing

August 25, 2014 at 4:07 PM

Timely billing can greatly affect your success in getting paid for your products or services. If you adhere to a schedule of invoicing and customer contact, you will increase your timely payment rate.

Inadequate management of receivables can cause serious cash flow deficits.  Take a look at your billing procedures and make just a few simple changes. You may be able to INCREASE the number of accounts that pay on-time, DECREASE your number of aged accounts (past 60 days) and DECREASE the number of accounts you submit for collections. 

  • Process and send the bill the day of service/purchase or at least within a day or two.  If you delay your billing, you send the subconscious message that there is no urgency to pay. The sooner a bill is received by your customer, the sooner it’s paid.  If you only send out invoices once a month, the transaction could be as much as 30 days old.  If it’s net 30, even if paid on time, the payment is received as much as 60 days from transaction.
  • Make sure that a due date and net terms are prominently displayed on the invoice.  Set your expectations for payment.
  • Send out statements to all customers with outstanding balances. This should be done at least monthly and every two weeks is even better.
  • Pick up the phone and CALL.  Just a friendly reminder call can help you find out why it hasn’t been paid (didn’t see the bill, an invoice discrepancy that needs to be resolved, etc.). 

These are just a few ways to improve you billing process.  Visit the resource page for more info and check this blog page often for more articles. 

 



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