Business billing and collection can be very smooth if you have a great policy in place and you follow it consistently.  As a computer consultant, if you have difficultly getting paid, you can often trace back the problem to your practices of business billing and collection.  Here are some tips to follow when outlining your policy for business billing and collection.

Business Billing and Collection Tips

  • The first invoice or first project with a new client is like a proving ground. You’re proving yourself as a reliable and knowledgeable vendor and the client is proving they can follow your business billing and collection policy.
  • Bill every week without fail for the previous week’s work.
  • Send out past due notices at the same time. Get yourself a “past due” rubber stamp from the stationary store.
  • If an invoice goes more than a week late, make a phone call and ask them if everything is okay on the invoice and the work you performed.
  • Always use a specific due date as opposed to due in a certain number of days.
  • Insist on getting paid.  Even if your clients fall on hard financial times, you cannot afford to be their banker.
  • Become familiar with your aged receivables.  This is a valuable cash flow tool that will help you manage your business billing and collection.
  • Get thick-skinned when dealing with business billing and collection.  If you can’t do it, you have to hire someone who can, like a bookkeeper or virtual assistant.  

Business billing and collection is too important to the health and viability of your business from a long term perspective to let it fall through the cracks.  The harsh reality is there are a lot of small businesses out there that will hire your firm and never have the ability or even the intention of paying your company at all.

Bottom Line on Business Billing and Collection
If you don’t follow these basic business billing and collection practices, you are going to get stuck on bills. It’s inevitable. Be aware that even if you DO do everything mentioned, you’re still going to get stuck from time to time.  The idea is that by developing and adhering to solid business billing and collection practices, you can lessen about 90% of your risk.

In this article, you’ve been introduced to Business Billing and Collection. To learn more about how you can improve your knowledge about Business Billing and Collection, just click here now to get access to a free one-hour audio training program on 5 Easy Ways to Grow Your Computer Consulting Business.