client billing | Spark Business Consulting

In a service business,? the billing cycle may not be as clear as it is in retail,? where you generally don?t get a product until after you pay for it.

Those of us who provide services to others work in different ways,? sometimes depending on industry standards.? Some may require a retainer,? such as a lawyer or accountant.? Some may ask for deposits on projects but then not get paid for the remainder until the project is complete,? such as web designers.? It?s all over the map.

The bottom line is,? we must bill our clients at some point.? I?ve found that many small business owners are not good about this.? Then they get into trouble with cash flow and wonder why.? Once they do the billing,? they have to wait for payment, ?often longer than they had hoped.? It?s been my recent experience that it takes longer to get paid in this economy.? Cash flow issues seem to be common.

My best advice with regard to billing is to create a system that works for you,? and stick with it.? Find a day of the week or month and a time?that seems to work best and block out the time slot?on your calendar to do the billing.? Don?t allow any other interruptions.

Part of creating the system involves the recording of billable time.? How do you keep track of what your clients owe you?? Is it in their client folder?? Is it on a separate time log?

Now, how is the billing going to get done?? Is this a manual process?? Can you do your billing through Quickbooks or other accounting software?? If not,? then how will you keep track of who has paid and who has an outstanding balance?

While you?re at it,? create your payment policies,? such as when the payments are due,? and if you will charge interest on late payments.? It is ok to state on your invoices ?Payable Upon Receipt?.

If you have a business that gives you a variable income from week to week, ?it?s imperative that you get a handle on the billing process.? If you need a hand,? Spark Business Consulting can help.

What difficulties have you encountered with your billing process ? or do you have one?? I?d like to hear from you.

Source: http://www.sparkbusinessconsulting.com/are-you-billing-your-clients/

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