One of the most crucial processes to run your business successfully is billing. Undoubtedly, we can say that is it is the fundamental process to keep your enterprise running. Without proper billing and invoicing process, you may have to face a myriad of serious problems. Late payments may cause serious cash flow problems.
Therefore, it is important to understand the ways that help to advance the firm’s billing process. Billing and invoice management is necessary to get paid faster as well as accounts receivable management.
THE BILLING PROCESS
The billing process is a nightmare for business, yet it is an important part. It is quite time consuming even if you are efficiently sending invoices for cash collection. That’s why it is important to have a good billing system in place.
Poor billing system leads to late payment because invoices take too long to get out of the door, hence delaying the cash you may need. Therefore, billing issues must be fixed at once. It can’t be done overnight, but with continuous efforts of improvising the billing process, it is possible to get payments quickly.
HOW TO IMPROVE YOUR BILLING PROCESS
Four key ways to improve and advance the billing process of your company are discussed below.
KNOW THE TERMS OF THE PROJECT
The more clearly mentioned your terms and conditions of the billing process are in the contract with your client, the less likely you face problems and misunderstandings. Remember, discuss every single detail of payment policies before making a deal. Because your policies determine how and when you are going to be paid.
That is why make clear cut payment policies beforehand so that you do not have problems later. Communicating all payment terms and policies, in the beginning, will also help in getting payments in a timely fashion.
Moreover, always ask your clients about the payment method and time they prefer. Also, do not feel bad about mentioning the late payment consequences at all. In this way, your clients make sure to pay you on time.
SCHEDULE FREQUENT BILLING REVIEWS
Project billing evaluations should be arranged every month. Many companies schedule it once in a month, which causes so many hold-ups when you are trying to do all the reviews together over a short period. Instead of doing it altogether at the end of the month, do it every week so that you will not have so many bottlenecks in billing reviews.
For instance, roughly you have twelve projects on working at the same time, you can evaluate three a week instead of twelve at the end of the month. And even if you’re not billing your client every month, it’s quite smart to review the duties you’ve billed routinely to make certain they are billed to the correct project and the right task.
MONITOR THE BILLING PROCESS
Usually, several individuals need to be involved in the billing review process, like project managers, accountants and directors. And there are great chances of missing the invoices or bills. Therefore, monitor the billing process thoroughly.
STORE DOCUMENTS ELECTRONICALLY
Project billing normally needs duplicates of reports and receipts as a backup for duties on an invoice. Unfortunately, many firms still rely on paper-based backup systems. This system takes too long to compile all the records and receipts and demands a lot of manual efforts.
Instead, all documents should be kept in a document management system electronically. In this way, you can easily find the desired information and data and compile it into a single pdf file so that you can send it to your clients with the finalized invoice.
Hence, the best approach to advance your invoicing process is to automate it. Creating manual bills frequently for numerous customers sucks quite a bit of time. Moreover, keeping invoice details and manually checking your client payment statuses is another challenge. And, at times, you could fail to recall about unpaid bills and you are ambiguous if you have reminded your customers of their late payments. So, a good invoice software should be implemented by the company.
An invoicing software benefits you in many ways, from making customized recurring bills, preserving client data, arranging and sending reminders, following your invoices’ status and a lot more, and this is how you can advance the billing process in your company.