Do you have problems in getting paid for the work you do? Efficient invoicing is another step in creating efficiency in your office. Efficiency will give you more time to do the work you enjoy, makes more money and gets you out of the door more often. Last week we talked about how to handle all those little pieces of paper, i.e. receipts, bills, etc. If you missed the column, go here to read it.
If you are retail or a restaurant – any business that has a POS (Point of Sale) register or system, this may not apply to you. However, do you provide catering, special orders or other sales that are not of the norm? Read on to see if you might find a better way to make sure money is sitting on your doorstep.
Week 2 Tip – Efficient Invoicing, Getting Paid for the Work You Do
I cannot tell you how many times I have heard from business owners because they are behind in their client invoicing. ARE YOU KIDDING ME?
In my bookkeeping business, I often have clients tell me they want me to handle their invoicing. They hate doing it and therefore never get around to it. One client would receive $5,000 a month in recurring business income if they sent out regular invoices. In addition, they were losing twice that amount in uncollected fees because they HAD NOT BEEN BILLED. Consequently, they are losing more than $150,000 of income each year.
Regular Monthly Fees
Efficient invoicing for clients who have standard fees charged on a regular basis can be set up to receive automatic monthly invoices. Rather then winging it, check into PayPal, Quickbooks or other online programs.
If you don’t want to do it through a service that charges fees for credit card processing, you can still set up your accounting program to populate and email regular bills.
Still too techno-advanced for your liking? Then set up a recurring calendar item or task so you don’t forget to do it and when to do it. If you have a small number of clients you need to bill, list them right in the note section of the reminder. The key is to set up one system that creates efficient invoicing.
Varying Fee Clients
For clients who with different charges each month, create a system where you are keeping track of what you are billing for.
Options for Tracking Fees:
- Enter fees regularly in your accounting program
- Maintain a billing form in the client’s file on the computer or their physical file.
The important thing is to keep track. Every time you do not charge a client for time or materials, you are losing money. Most of all, focus on sending out regular invoices and that money will add up. And you know? – your clients expect receive a monthly bill. If you skip a month and then have to send them a double invoice, what are you saying about your customer service?
As I talked about in last week’s tip of handling pieces of paper, if you commit to 30 minutes a day or week to take care of business, your cash flow will improve dramatically.