Invoice on a Timely Basis
© THE PROFIT LINE Reprinted with Permission
You would think business owners would be eager to perform a small task that directly results in them getting paid. Oddly, however, many business owners get lax with their invoicing. Yet remember, your clients won't pay invoices they don't receive.
Bill clients promptly when work is complete. For ongoing work, bill consistently and as soon as possible following the billing period. To help avoid procrastination, develop a template that will make the process quick and painless.
Invoicing regularly and promptly brings many benefits, all of which contribute to a healthy business.
It improves your cash flow.
It helps you identify problem clients more quickly. If someone is dragging their feet on payment, you can see this before you sink too many additional hours into the account.
It reduces invoice disputes since clients will clearly remember the work performed. Invoice too many months after the fact and they are more likely to forget work you've done and question your bill.
It improves client relations. Believe it or not, most clients like to be billed right away as it helps them manage their cash flow more effectively. Try dumping an invoice for six months of work that you've been saving up, and see how well that goes over with your client. (Hint: It won't go over very well at all.)
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