When you are running a small business, billing can be a hectic process. You try to deliver invoices to your customers but they fail to pay on time.This can be a nightmare and a time-consuming exercise,however; it is a crucial process of the business.That is the reason why it is significant for small businesses to have an operational billing system.If you are a small business owner, seeking ways to receive timely payment from your clients you must put in place some measures that will see you through the entire process.
Remember at the closure of the business, you depend on the assumption that almost all your customers will honor their payments on time and accurately. This doesn’t only happen to small businesses but it cuts across all businesses no matter big or small one thing is crucial and that is the cash flow.
Why must business pay more attention to the billing process?
The billing process is very crucial when it comes to every day’s business activity especially when dealing with payments, in fact, it can be said to be the heartbeat of all your business operations. As the body is to blood so is your business, cash is the blood of your business that helps it to keep progressing and that’s why a business owner must ensure an effective and smooth billing process.
Although this is natural and apparent to all business owners and managers, few of these players actually take action to advance, streamline or ensure the efficacy of their accounts receivable department although there is almost always room for improvement.
Below is a list of ways you can improve your billing process today! You may also read about usage billing
- Put your terms in place beforehand
Prior to engaging your customer, you should both come to an agreement on your terms. This is the foundation of good customer collaborations and will help to evade surprises and raises the chances of receiving payments from your clients on time.
Your terms should show:
- Whether you bill per hour or per project
- What you charge and any extra costs
- The timeline of your project
- The modes of payment your client can use when paying you.
- The allowance within which your client is likely to pay after you send them an invoice
- The fine that the client should pay in case they delay their payment.
- Ensure your payment methods are latest
Now that you have made it clear the type of payment methods you clients should use while remitting their payment, ensure it is up-to-date. The latest modes of payments are PayPal, e-checks and direct transfers, however, it is good to ensure youraccepted type of payment method is easy to use and safe.
- Reduce errors
The billing process is a very crucial process that needs to be error-free. In case of any errors, your clients can fail to trust you.Although there can be errors but they should not be extreme.
- Prioritize your billing process
It is good to note that the billing process is very important as the products and services you sell; therefore you must ensure to make it a priority.