Common Billing Mistakes and Solutions
How to avoid billing mistakes in your business
Billing is one of those tasks that is necessary but not always prioritized. It can be time consuming, and often details slip through the cracks. Delegating billing can free up time and you can rest assured that someone is doing it properly. Here are some common billing mistakes:
1. PAYMENT TERMS: having unclear or payment terms, or none at all can cause confusion and conflict between you and your clients.
2. LATE PAYMENT POLICY: are your invoices due on receipt or 30/60/90 days? Are you having issues collecting? Late payment interest can act as a deterrent, and it also serves as a contract term for potential claims for unpaid invoices (always obtain legal advice).
3. LIMITED PAYMENT METHODS: Are you making it easy for your clients to pay? It might be worth allowing your clients to pay with credit despite the fees. Do you accept e-transfers? There are a lot of merchants that will provide cost effective solutions for debit and credit transactions that may require a terminal, or access to online processing services without a terminal. It may be useful to revamp your payment system.
4. INVOICING AND CHASING LATE PAYMENTS: Are you cutting corners with invoicing or forgetting to do it on time? Are your charges clearly explained or do you find yourself with constant invoice inquiries? Maybe a unified system of explanations may work better for your services.
What about chasing unpaid accounts? No one likes asking for money, but consistency is key. Minimize your loses by following up on unpaid accounts regularly.
Billing is important and definitely worth the effort. Let's discuss how I can help. I also have experience with legal billing. Please visit www.ontarioassistant.com or simply send me a DM should you have any questions.