3 Ways to Streamline Your Billing Systems

Over the past couple of years, one thing that I’ve heard from many of my clients is that their billing systems are in desperate need of streamlining. This tends to hit some industries more than others, but all businesses need streamlined billing systems – and many owners need help executing on them. 

Strong, streamlined billing systems will not only help you collect the money you need to be profitable and help keep things in order when it comes to tax time, they’ll also save you valuable payroll dollars and increase client satisfaction. (Really, who enjoys not knowing what to expect when it comes to paying your bills?) 

Over the years, my team of Financial Controls Coaches has helped many businesses put strong billing systems in place; one of them is also my Bookkeeper and the brilliant mind behind large portions of our Financial Controls Systems Manual. She was gracious enough to offer up some valuable tips to help you put the billing systems you need in place! (By the way, if you would like to work with her or one of our other Financial Controls Coaches, let me know – I’d love to chat more!) 

Tip 1: Centralize Your Billing Information 

Centralizing your billing data is something that makes sense on the surface, but putting it into practice can be a little more challenging. 

When you first started your business, you were probably more concerned with actually gaining paying clients than setting up a centralized database. When you’re working with your first few clients, it seems a lot easier to keep everything straight. 

As you grew, however, you probably noticed the need to keep everything in one place so that it’s easily accessible – so that you don’t have to dig through emails to and individual invoices in order to figure out what’s been billed, what’s been paid, and what might have slipped through the cracks. 

At the very least, your centralized information should include: 

• Customer information and details 
• Payment history 
• Billing details 

Pro tip: this is where a strong Bookkeeper can be your saving grace. You’ll still want to have a good idea of the systems you want to use, but your Bookkeeper can take care of the details and put them into action for you. 

Once you have this in place (and you have the documented systems to keep it in place), you’re ready to move on to the next step. 

Tip 2: Systematize Your Invoices (and Automate Them When Possible) 

This process starts with determining your billing cycle.  

Are you going to invoice monthly? Bi-weekly? Quarterly? On specific days of the month? Write this process down so your team and clients are aware. (This might seem like a no-brainer, but you would be surprised how quickly billing cycles can become confusing.) 

Once you have determined this process, find ways to automate your billing as much as possible. This will not only save your team time, it will also mitigate the possibility of human error.  

Of course, you’ll want checks and balances in place for the automation, as any type of software can glitch, but as long as you have the oversight in place, you’ll find that it will save you a lot of time and stress. (Automating this process will also help to keep your A/R in check!) 

Next, you’ll want to make sure your invoices are easy to pay. Your clients hire you knowing that they’ll need to pay (and most are fully willing to do so), but if they have to go through unnecessary steps in order to give you money…well, you’re a lot less likely to get paid on time. 

Again, this is a place your Bookkeeper can help you. They probably work with other clients and have experience with what works well and what doesn’t; they often also make it their business to keep up on the latest trends and changes in billing and accounting software. Take advantage of their knowledge and put it to work for your clients! 

Which brings me to our last tip. 

Tip #3: Make It Easy for Your Clients to Do Business With You 

This tip has some carryover from Tip #2, as it involves making it easy for your clients to pay you. 

20 years ago,  it was completely normal to write and mail a check when we received a bill; today, most people prefer to pay online with a debit or credit card, or (in some industries) even something like Apple Pay or Venmo. 

Long story short, if you don’t have a secure way for people to pay online, they’re far less likely to hire or purchase from you.  

However, this goes beyond just making sure that people can pay online. It also includes realizing that people are busy. Just because your invoices are a priority for you doesn’t mean that it’s top of mind for them. 

This is why it’s also important to have things in place like automatic billing reminders (those emails you get reminding you that a payment will be taken out of your account in xx days) or a client portal that allows your clients to view, track, and manage their payment processes. 

Essentially, creating and streamlining your billing systems is a matter of 

• Defining your goals and processes 
• Partnering with your Bookkeeper to implement strong systems and the right platforms for your business 

• Making your billing procedures user-friendly for your clients 

This will help you not only streamline the processes for your team, but also make things easier on your clients. If my team and I can help you put them in place, let me know – we have both systems packages that you can implement at your own pace and experienced coaches that can walk you through the process!