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Best Practices for Billing Clients Not in the Office

Establishing best practices for billing clients is a critical component for enhancing positive cash flow and keeping the business running smoothly. With that said, it’s critical that a business has an established invoice system that sends and creates bills efficiently. Implementing best practices for billing clients when not in the office will save you time and money. It also helps generate more revenue in the business. Below are some of the best practices for billing clients outside the office.

Set your terms

Before working with a client, you should both agree on a set of terms. This is an initial step toward good customer relations, helps to avoid any friction, and increases the chances of getting paid on time. The set terms should clearly state when the project should be complete, penalties to be charged to a client when the bill is past due, and the different types of payments you accept. Fees, billing schedules, and payment timeframes are additional terms you should take into consideration.

Create invoices that are straightforward and easy to understand

To avoid confusion, it’s best to avoid complex billing invoices. For instance, let’s say you are a coder, and you sent an invoice to your client for working on SQL. Since that abbreviation is unknown to many individuals, the client will most likely not understand what you are billing. In such a scenario, you should include an English description of the type of task you performed for the client. 

Utilize electronic billing

Invoices have a greater chance of being paid on time if you send them electronically versus via snail mail. In addition to faster processing, you will have a printout showing you the date sent and a confirmation report reflecting the insurance company received the invoice. Electronic billing is essential for sending out and keeping track of your invoices promptly. It speeds up the billing process and prevents any manual errors. There are plenty of electronic billing tools available that are easy to manage and help you get paid quickly.

Keep good records

Another best practice for billing clients when outside the office is keeping accurate records of the work. For instance, if you charge hourly, ensure that you are time tracking every task to prove what you spent. Well detailed records are essential for proving your claims. This way, you can effectively back up your claims if a client allegedly disputes the invoice or bill. You should carefully organize your documentation, paperwork, and payments paid as well as the ones pending. 

Use correct details in your invoice

Accuracy is key when it comes to electronic invoices, and it’s important to confirm that the name, address, amount to be paid, and the due date are all correct. This will help avoid giving misleading information in the invoice. You should also include the different payment methods you accept and your correct bank account details.

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