The quicker you bill, the quicker your chances of getting paid. And shortening your cash flow conversion period is one of the quickest and easiest things a business can do to improve its cash flow.
Traditionally businesses bill at the end of each month, sending all their invoices out in one batch. But that means that if you do a job on the 2nd or 3rd of a month, you're adding almost a whole month to the time that you're waiting for your money!
So don't wait to invoice; change your billing practices so that you bill immediately after the work is completed.
And to make your billing process even faster, don't send invoices out in the mail if you don't have to. Leave your invoice with the client when the job is completed or email your invoice if possible.
Related Articles:
- How to Invoice - What an invoice has to have on it and an invoice sample that you can use as a template if you like.
- 5 Quick Ways to Improve Your Cash Flow - Four more ways to get and keep your cash flow moving.
Photo (c) Robert Gaal