Helpful billing habits

Prompt, regular billing sends a message that getting paid on time is a high priority at your company. Conversely, slow or sporadic billing is an invitation for your customers to delay payment. Getting your bills paid is more important to you than to most of your customers. If you procrastinate, many customers will follow your lead.

Be disciplined about billing on a regular basis. Bill at the same time each week or each month, or send invoices promptly at the time of service. Make it easy for your customers to pay you on time.

Invoices should be accurate, understandable, and readable. The bill should not raise questions that might delay payment. Describe the items or services sold in clear terms that your customer will understand - let them know exactly what they’re paying for. Display credit terms, balance due, and date due prominently.

If you are billing another business, find out what they need in order to pay on time. Some companies require a purchase order or several copies of the invoice. Many companies pay bills according to a schedule, for instance on the 1st and 15th of each month. Consider timing your billing to coincide with the schedules of your largest accounts.