Issue link: http://psai.uberflip.com/i/1159010
W EEKLY EDITION AUGUST 21, 2019 G et ti ng Pa i d : Part I By Karleen Kos, PSAI Executive Director YOUR PROCESSES Whatever your policies, they won't do you any good if you don't have the ad ministrative systems to back them up. Here are the things you should put in place to ensure customers know what and when to pay you. • Bill promptly. For you, the receivables clock starts ticking as soon as you deliver a unit or service. For the customer, i t doesn't start ticking until they have an invoice in their hand. If you are a mid - sized or larger company, sending customers a timely bill is probably a no - brainer, and you are confident that your team member in charge of accounts receivable is on top o f things. If you are smaller, you may sometimes feel pulled between being out on the truck doing service, selling to new customers, and collecting from existing ones. The struggle is real. So are its consequences. If you don't bill in a regular and profess ional way, you'll be seen as unprofessional. In addition to giving customers the impression they can be equally informal about paying you, failure to bill regularly and professionally will bar the way to growth. You'll find you lack both cash that is owed by current customers and the credibility you need to win new customers. • Invest in technology. If you are poorly organized, collecting from customers – even those who want to pay on time – can be a difficult and time consuming process. Shop around for com puter software that can help with streamlining processes like recurring billing, electronic invoicing, and communication with customers. There are many affordable options for accounting software, and the PSAI has several supplier members who specialize in integrated packages with forms that are tailored to the portable sanitation business. • Create a process and stick to it. Consistently following up with customers about unpaid invoices is critical to your company's stability. If you owe on your equipment yo u can be sure your creditors expect to be paid on time, regardless of whether your customers have paid you. So you need a system for following up with customers who haven't paid, and you need to follow it without fail. The most effective approach may var y depending on your location and the laws governing business there. In general, though, most companies follow up with a phone call or email after no more than 30 days – and after 15 is better. Other steps in the process can include re - invoicing, late payme nt penalties, and enlisting a collection agency. P AGE 14 CONTINUED ON PAGE 1 5