Improve Your Billing System
A smart way to improve your cash flow is to coordinate your billing system with your customers' payables procedures.
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Here's how to set up your system:
- When setting up a new account, call to find out what the business's payable procedures are. Ask if there's anything you can do to ensure prompt payment.
- Make sure your invoice is easy to read and contains all the necessary information. Clearly identify your product or service, your terms and where to send payment. And don't forget the purchase order number.
- Sometimes big companies pay certain bills on specific days of the month. Find out when checks for services like yours are cut so you don't miss the cycle.
- Make sure you send your invoice to the right department. Does the company need the approval of the actual purchaser, or do they prefer you send your bill straight to accounting? Taking the time to refine your billing procedures could get you paid faster.
Excerpted from Get Smart: 365 Tips To Boost Your Entrepreneurial IQ