For small companies, billing can be tedious. But it’s also an essential part of business. If you don’t have a good billing process in place, you may not get paid on time or at all by some clients. So here are eight tips for improving your billing process:
- Set the terms of the agreement
Setting clear terms of agreement helps prevent misunderstandings between you and your client. Terms could include due dates, late fee policies, payment options, and more. Make sure you and your client agree on these by listing them clearly on each bill. Make sure to be specific as vagueness can open the door to confusion.
- Optimize your billing times
Try to send bills to clients on a regular schedule, such as on the first day of the week or month. This way, your client can have a better idea of when to expect bills and is less likely to let them fall through the cracks as a result.
- Minimize errors
Billing errors can sew seeds of distrust among clients. Even if it’s an honest mistake, accidentally charging too much, for example, can lead a client to question your good intentions. So make sure to verify information on bills multiple times to ensure they are accurate.
- Automate with billing software
Billing software can help automate your billing process by helping you create invoices from templates and proposals, setting up recurring billing schedules, automating due date reminders, and more. If you’re not already using billing software, you should. You have many to choose from at different price points and at different levels of features.
- Store in the cloud
Small businesses would do well to store their bills in the cloud. This protects their billing records from getting lost, stolen, or damaged. It also makes them easier to share and reshare with clients. And it makes handling taxes, audits, insurance claims, and banking disputes much easier.
This is why many countries are requiring e-invoices over paper ones. For example, the new French invoice mandate requires e-invoices to be in a particular format.
Instead of letting your business get behind the times (and risk non-compliance with local regulations), adopt a cloud invoicing system.
- Integrate existing software
Instead of relying on many disparate business programs, use billing software that integrates with your existing systems. For example, use billing software that integrates with your accounting, payment, and project management software. This can help streamline the billing process for all involved.
- Write clear calls to action (CTAs)
To increase the likelihood that your invoices get paid and get paid on time, make sure to include on them clear calls to action (CTAs). This means putting in bold or a vibrant color (like red) the amount due and the due date. You can also include a request to call you if the client needs a due date extension or is struggling to pay the bill. That way, you can at least work with them to find a solution rather than being in the dark.
- Follow up with reminders and late notices
Finally, send your clients reminders and late notices regarding unpaid bills. This shows that you are serious and proactive and increases the chances that you will get paid on time. Plus, a friendly reminder never hurt anyone.
The bottom line
At the end of the day, there are many ways to improve your billing process. Start with one of the tips above and gradually implement others as you’re able. Over time, you’ll notice significant improvements to your business.
