NFIB

Coordinate Your Billing With Your Customers' Payment Procedures
10/ 16/ 2002

Too many small businesses begin a relationship with a new client and simply begin sending invoices at various stages of completed work without discussing it first. The results can be delay of payments, confusion over items billed and irritation for the customer. In today's Workshop, Jeffrey Moses offers a few simple steps to take before putting a bill in the mail.

After picking up new business, speak with the company's bookkeeper, accountant or whoever will be paying your invoices. Ask the following questions:

1. At what time during the month do you write checks, and when would you like to receive an invoice to make payment quicker and easier? How often should I bill?

2. What specific information, such as customer number, purchase order number and a breakdown of projects, would you like to see on each invoice?

3. Will you need to have payment authorized by specific department heads or managers? Or should I send invoices directly to accounting?

4. Who will be my primary contact?

5. Do you prefer bills in small increments--for instance, whenever your bill reaches $500 or $1,000, instead of waiting two weeks or a month when a bill may total much more than that?

Whenever additional services or products are purchased that were not included in the original purchase order, make sure that you know how to properly bill for these added items. Don't assume that you can simply add them to your regular invoices. You may need separate purchase order numbers, separate approval by the purchaser or separate invoices sent to different individuals within the company.

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