Consider the following:

• Set a Process. Set a process that has billing occur at a set time with all necessary internal supporting and approval processes. Add these reminders to a calendar so that it happens on a consistent basis. This often often occurs at a regular interval, such as right after the end of the month.
• Billing as Close to of Period End as Possible. The sooner you send out your invoice, the quicker you’ll get paid. The invoice should go out immediately following the completion of a project or a period.
• Automatic Billing. All current accounting software has automatic billing functions and can also schedule the distribution of bills. This is a great way to make your process efficient.
• Bill Electronically. Many companies are set up to receive and pay bills electronically. This eliminates the risk and time of the mail.
• Recurring Billing. Setting up billing to be at a regular recurring cycle (e.g., on the 15th day of each month) improves your billing process.
• Billing Prior to the Upcoming Month. If you bill a standard amount each period (i.e., $50 per month) some customers will be willing to pay prior to or during the middle of a month as opposed to at the end.
• Bi-Monthly Billing. Increase the frequency of billing from once a month to twice a month. This is more work but means that you aren’t waiting a full month to receive payment.
• Clear and Correct Invoices. Ensuring that invoices are clear, correct and have the right amount of detail sounds basic but is often overlooked.
  • Directions. Your business name, where to direct the payment, and contact information for billing questions.
  • Proper Addresses and Information. Double-check that you’re sending the bill to the right address (physical or email). Sending the bill to the wrong location delays the payment process.
  • Itemize All Invoices. If you have a vague or broad invoice, the client may be inclined to question the charges. Stay ahead of this by providing detailed descriptions of the services or products that are included in the bill.

• Send Bills to the Right Person. Make sure that you’re sending the invoice to right individual. Just because you were hired by a client doesn’t mean that they’ll be the individual paying you. Usually, they have an in-house accountant or have outsourced billing elsewhere.
• Make Invoices Easy to Track. Using invoicing software tracks invoices since each invoice includes a unique number after it’s been created and sent. This allows you to easily locate the invoice if it hasn’t been paid or if you get audited.

Billing efficiently is a key step to maximizing your cash collections.