Bullet-Proofing Your Billing and Collections: 7 Secrets to Protect Your Cash
Has this ever happened for you? You are taking care of a project with a customer. The task is running along nicely when suddenly something occurs that causes your client to issue something you did or didn't do. You immediately look after the issue and move on. The task ends and you send an invoice.<br /><br />Your client calls you and says they're not planning to pay the entire amount due and they mention that small incident that you thought you took care of.Another scenario that occurs far too often are business owners upfronting the expenses to-do business since they are hesitant to require deposits or mid-project payments. This can take a massive toll on your power to have cash to fund your business.These are the times that try business owners' souls - to piggy-back on a popular saying.What could you have done in this situation to make sure that you got paid the entire amount due? Exactly what do you do to make sure you are not operating as a 'lender' for your clients?Here are 7 'must-dos' when you consider carefully your Billing and Collections activities of the business.Put your agreements for products or services sales in writing. Be sure the agreements format expectations on what you will deliver in addition to what your client has to deliver.<br /><br /> Usually review transaction terms in advance having a customer. Be sure to arrange to receive cash upfront to be able to include any out-of-pocket expenses. Set goals for deliverables and payments should you use clients on a long term basis. Reserve time monthly to get your billing done. Have a conversation with your client and look at targets and what benefit you provided before you send the last invoice.Your main goal as a company owner would be to Grow, Protect and Save your cash.In addition to these 7 techniques, make certain you are on the top of your receivables.<br /><br /> Question yourself: Have my receivables fallen in to the 60 - 90 day payment array as opposed to 10 - 30-days? You might have to revisit your payment terms and add a surcharge on all receivables more than 30 days old [hhttp://www.youtube.com/user/DallasRoofingPros roof repair dallas].What do you do if you have a clients that's behind in paying you? Simple. Stop work! Tell them, nicely, that when they get their account current, you will be happy to move ahead with their project. A massive mistake we can create as business owners is to permit this case to get way out of control.The challenge of staying together with the financial side of your business can have a backseat to all another actions that need your attention. So you've to include place policies and procedures that guarantee that you're taking care of that cash nevertheless, your company requires cash.