The Basics of Credit Control - The 8 Steps to look out for : 4 - Invoices
Billing is the most important stage in the process of “Credit Control”. To having payment in time, billing must be fast, organized and efficient.
Bill regularly, before sending invoices, make sure that all terms are respected (price, discount, quality, quantity). You must send invoices in the right time, to the right person, by the right method.
There is 7 simple topics that can help you develop a strong Billing process for your business:
Topic 1 - Set your terms: use a business solution and maintain regularly terms control, always adjust terms if there is any revision.
Topic 2 - Create clear and detailed invoices: terms and conditions must be readable in your invoices.
- Include all necessary details on your invoices while still maintaining clarity and readability. Label the document as an “Invoice,” ideally near the top, so your clients know exactly what it is at one look.
- Include your contact information, as well as that of your client.
- List out the products or services as clearly as possible, along with unit prices, quantities, taxes, applicable discounts, and the final amount you’re looking to collect.
Topic 3 - Put the contact of people in charge of billing in all the invoices to help customers to have information easily.
Topic 4 - Minimize errors: invoice errors can cause mistrust and confusion between you and your clients, delay payments and make your process worst. Focus when billing.
Topic 5 - Copy/Paste: the invoice must be the same as the Purchase order (PO) received from the customer; any differentiation can make a misunderstanding and can maybe delay the payment.
Both documents PO & Invoice are legally binding contracts, this means that the agreement has been made by both the purchaser (client) and the vendor (you), and that the actions they contain are required.
Topic 6 - Pay special attention to your invoice design:
Do not spend more time on your website designs, business cards or logos, but think about the importance of a properly designed financial document: your invoice.
Just because the invoice is a business document, doesn’t mean it has to be boring, your bill must be clever and attractive, think to make personalization to your invoices, mke your customers love your invoices.
Topic 7 - Make billing as a priority
The billing process is just as important as the product or service that you sell. If a customer is not happy with billing or terms, they will most probably choose to look elsewhere for their business.
Billing process can greatly influence the reliability and reputation of a company for good or for worse.