The Invoice Dilemma
Many companies struggle with getting their invoices out on time. A professional and repeatable accounts receivable process not only ensures timely payments but also reflects the professionalism of your organization. We managed to reduce our receivables collection time from 40 days to just 7. Here's how we did it.
Step 1: Mapping Out the Process
The first step was to map out our entire invoicing process. We identified each step, who was responsible for it, and how long it took. Initially, it took two people four to six hours to complete the invoicing process. Now, we get it done within an hour on the first day of the month.
Step 2: Streamlining Services
We streamlined our services to make billing easier. By revising our offerings to a subscription model, we reduced the complexity of our billing process. This change allowed us to focus on fewer, more consistent services.
Step 3: Revising Contracts
Next, we revised our contracts with clients to allow automatic fee deductions on the 10th day of each month. This change ensured that payments were made on time without the need for manual intervention.
Step 4: Automating with QuickBooks
We set up recurring sales receipts in QuickBooks. Every time we onboard a new client, a sales receipt is automatically generated. This receipt informs the client of the charges and simultaneously pulls the funds from their account.
Overcoming Client Hesitations
Some clients were initially hesitant about automatic deductions. We addressed their concerns by highlighting how they already use similar services, like Microsoft subscriptions. We emphasized the convenience of not having to send a check each month, making this one less task for them to worry about.
Conclusion: The Benefits of Automation
By implementing these changes, we not only sped up our accounts receivable process but also improved our overall efficiency. Our clients appreciate the streamlined billing, and we enjoy the benefits of a more predictable cash flow.
Contact Us to discuss how we can support your business and streamline your invoicing. We're here to help!
