When your business does not bill properly, it is literally leaving money on the table. This is an unforced error that can be remedied if you know what you are doing wrong. With so many options to make billing easier than ever, there’s no excuse for making any of these mistakes. Here are some of the common billing errors that startup business make.
The Website Lacks a Billing Portal
Having a reliable and easy to use website can make a large difference in helping customers feel happy with your company. Moving some of your billing online can save you time, expense and hassle. When customers realize that they can pay their bills online, many of them will take that option since it saves them time as well. This gives you an easily documented means to handle your billing because you can track these payments. At the same time, it reduces the amount of effort that is required to collect the bill since the online payment will most likely link directly to your bank account, reducing the need for physical collection mechanisms.
Not Using Accounting and/or Billing Software
Given the advances and reduction in cost in accounting software, there is simply no excuse not to use it, whether you use it yourself or hire someone to do it for you. More knowledge is always better for business. Kareo talks about how with outsourced billing services, you get a whole team dedicated to your success, harnessing the collective experience of that service. More experience is more knowledge, and more knowledge is always better for business. This is more preferable than doing it on your own, especially when billing may not be your forte or the first thing that you have on your plate.
Not Itemizing Bills
Your customers need to know exactly what they are paying for when they send you funds. Having a bill that is vague and not easily decipherable is bad business because it can undermine your customers' trust in your business. eForms discusses how your bills should be as specific as possible and that should start with a clear itemization of each line in the bill. This should provide customers with as much information as possible without going overboard. Clients may be less likely to dispute a bill when they know in great detail what requires payment. Also, it will reduce the perception that you are using the bill to try to pull the proverbial wool over your customers' eyes.
Billing is one of the more vital functions that your business will perform since it is how you are paid. Be aware of the process since that will dictate your results.