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Four Common Billing Mistakes For The Home Business

Even savvy entrepreneurs have trouble sometimes with their billing practices. That?s because the home-based business (or very small enterprise) often doesn?t have any particular ?rules? governing billing. Here, we?ll look at four common billing mistakes and the way those billing mistakes can be avoided.

Billing Mistake #1: Not sending out bills on a regular basis.

The Billing Fix: It?s easy to repair this billing error. Basically, you need to put some kind of system in process. For example, many people who work on services or projects give their clients their bills as soon as the product is given or the service is over. That means that bills are sent out upon completion. On the other hand, some companies prefer to send out bills once or twice per month (or on some other regular timeframe, such as the third Friday of the month.) This way, they will all go out at the same time, which makes it easier on the sole proprietor or bookkeeper.

Billing Mistake #2: Not keeping tracking of bills.

The Billing Fix: Many times, business persons will send out billing notices but never record them in a spreadsheet or other computer program. Thus, they have no way of knowing what they sent out. If you only do business once or twice a year, that?s not a problem; but if you are sending out many invoices on a regular basis, you need to have some way of systematically making sure that the correct billing documents have been sent out and that all your monies have been received.

Billing Mistake #3: Not having a process for billing errors.

The Billing Fix: You never want to make your customers angry, so you need to be able to answer them if they call and say, ?I received this bill and it?s just plain wrong!? This is another reason that you absolutely need some kind of billing tracking system so you can sensibly speak to even the most irate client. You have to be able to both assuage your irritated caller and ensure that he or she isn?t trying to take advantage of you.

Billing Mistake #4: Not having a billing template.

The Billing Fix: If all your bills currently look different from one another, you need to invest in a template to streamline the image you present to your clients. Most computer software programs, such as Microsoft Word, will even provide one for you (all you do is pop in your company name, tax ID number, or other data, and it?ll be customized.) This way, your bills will all be standardized and will look much more professional. After all, you want clients to be able to recognize your bills, not wonder why every invoice you send looks different from the one before it.

Remember that billing mistakes are common, but they are very easily fixed. Just put a little time and forethought into your billing procedures, and you?ll look incredibly professional from the very first day you open your doors.

Robert Michael is a writer for DD Billing which is an excellent place to find billing links, resources and articles. For more information go to: http://www.ddbilling.com

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