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