If you’re in the professional services business, you know how vital the invoicing process can be. At Maxwell Money, we’ve found that service-based companies often have similar problems with invoicing and getting paid for their services.
Many service-based businesses have come to us because they’re suffering from cash flow problems, low profitability, and a degraded client/customer experience. With our accounts receivable management services, we’ve helped them turn that around by implementing best practices for invoicing, including improvements in their pricing, billing, and collections processes.
Professional services depend on a good client relationship, and in some situations, talking about the monetary aspect of the exchange can seem like a threat to the quality of that link. Our clients tell us that invoicing is more challenging for professional services than for product-based businesses.
We have extensive experience of helping our clients dial up the professionalism of invoicing processes without jeopardizing the relationship aspect. We can help you communicate with your clients a little differently, setting (or in many cases re-setting) appropriate expectations. We help you create explicit service agreements, with specific terms and due dates, so you can invoice for your work in the way that’s best for your business. And we’ll show how you can still stay nice about it.
Choose the Right Type of Invoice
At Maxwell Money, we work with our professional services clients to help them implement the type of invoice that best serves their business interests. We’ll talk about the pros and cons of each to help you decide what’s right for you. Options include:
- Fee Schedule: invoices sent with the deliverable, such as the work or report
- Time and materials: invoices sent that detail time spent and reimbursable expenses for the previous month
- Periodic billing: for long projects, invoices created either at specified time intervals, percentage completion of at certain milestones
- Flat fees: invoice at the beginning or end of month for fixed recurring fees
- Retainers: invoice for monthly or quarterly retainers with period adjustments
Once you’ve chosen the right type of invoicing process for you and put a good, professional agreement in place, we can help you make sure your invoicing is flawlessly professional as well.
First off, we’ll get those invoices sent promptly, as soon as the agreement allows. You’ll probably want us to automate the process to ensure you never miss a date. We assure every invoice is accurate and complete, with correct contact information and amounts. We also make sure that invoices provide details on charges and services to eliminate the questions and delays that can affect timely reimbursement. We include the terms, and due dates agreed in the contract to help ensure prompt payments.
Make it Easy for Them to Pay
We can help make it easy for clients to pay you promptly by encouraging them to set up electronic payments. You might even offer discounts or incentives for doing so, depending on how important this is to your business. And we’re proactive—we follow up with a professional reminder notice even before your invoice is due.
Come to the pros at Maxwell Money and let us help you dial up the professionalism of your invoicing. We’re a professional services company too, and we want to make sure that you get paid for the full value of your services, promptly. We’ve got your books.