Sending out those monthly invoice notices to clients and customers is one of those routine tasks that many business people dislike. It's a surprising concept, but it's true. Despite the fact that the monthly billing notices generate the business cash flow, many business owners don't like the job. Keeping the company money rolling in needs a closer examination.
Cash flow is the life blood of any business. If no money enters the company bank accounts, the doors won't stay open to customers for long. As such, it's very important to examine ways of enhancing cash flow in simple, and uncomplicated ways. Billing doesn't have to be a chore.
One of the major reasons that many people dislike preparing and mailing invoices is guilt. While there is absolutely no reason to feel guilty about charging for your business services or products, many business people experience that emotion. The reasons for guilt could range from insecurity about the quality of one's work or product line to fear of upsetting the customer or client. After all, no one wants to receive shoddy goods or services. Even fewer people want to pay hard earned cash for that inferior product.
To solve those feelings of guilt, consider the goods and services provided to the customer. If they were as good or better than advertised, and if you delivered on all of your promises and more, there is no reason to feel embarrassed about charging for them. In fact, your customers will expect to pay a fair rate for your high quality work. Often, if a billing is not received, the client will call to have one sent to their accounts payable department. There is no need to worry about sending invoices. They are necessary and expected.
Another reason invoices are not sent in a timely manner is a lack of available time. The billings usually take place at the end of the month. As one of the busiest times for any company, month end can lead to neglecting the accounts receivable area. One solution to the time crunch is to set aside some time just prior to the busy end of the month. Most of the invoice amounts will be known a few days before the final days appear on the calendar. Any last minute charges can be done separately, as there will be very few of them.
A good time shift alternative is moving the invoicing period to the first week of the next month, or to the middle of the month. Different times will work best for different companies. Simply choose a slightly slower time and prepare and send the invoices when business pressure is lower. Not every time shift will work for every organization, but with some planning a suitable block of time should be found.
If invoicing in-house becomes too much of labour intensive chore, consider outsourcing the work. Vitual assistants can take over the invoicing duties freeing your time, and that of your staff, to other duties. Outsourcing has the effect of increasing the size of your staff when more personnel are needed most. If you find invoicing to be especially unpleasant, the virtual assistant can provide a convenient and cost effective solution.
As your business grows, the invoicing function will grow along with it. Don't feel guilt or embarrassment about charging for your goods and services. If you delivered on your promises of quality, your clients will be more than happy to pay for them. In fact, they will probably want to purchase even more product from your company, making those invoices for even larger amounts.
Send out those billings and watch the cash flow back into your growing company.
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