Countless industry experts cite poor cash flow management as the top reason businesses fail.
A big part of the equation is billing. Why? Because billing gets you paid. All that hard work you’ve put in doesn’t translate into greenbacks until you’ve invoiced clients. But, it’s a pain. Keeping track of everything can mean managing and reconciling an Excel spreadsheet so jam-packed with formulas that it’s on the verve of crashing your network, or giving your accountant a nervous breakdown.
In order to keep your accounting folks happy, and money flowing in immediately after work is performed, you need a better time-tracking and invoicing system.
Eliminate manual processes that take FOREVER, distracting from other key business areas. There’s a better way. With a business management platform, everyone tracks their time, in real time, and then the system bills the proper amount at intervals you set. All completed tickets automatically reconcile with the client’s service agreement, so you never over or under bill.
Challenge: Be 100% Billable.
How is this achieved? By tracking every second you work. Automate time tracking with a system that instantly launches the clock when you open up a service ticket, and also posts the time to the ticket as work is completed. Revenue and efficiency suffer if you don’t track billable time, in real time.
Warning: Billing delays lead to payment delays.
If you’re late, you can’t expect them to drop everything to pay you. Many companies require 30+ days to pay an invoice from the time it’s received. When yours arrives, it has to get in line and take a number.
Perhaps the worst part of billing late is that you risk working for free. It’s a sad fact, but some of your customers will go out of business. If you’re several months behind in billing, you won’t know they’re having cash flow problems unless they tell you. If you don’t know something is wrong, you can’t protect yourself or help them.
Bonus: You can help struggling clients.
Savvy technology service providers branch out into offering business consulting services. If they notice clients are missing payments, they have an honest conversation around challenges, and seek to help the client make simple adjustments that keep them afloat. It’s mutually beneficial and further cements the technology provider’s trusted advisor status.
Learn more about the importance of billable time by downloading the free eBook Booked Up, Busy, and Billable!