#4: Invoice Promptly

From The 30 Best Business Practices of All Time, published by PROFITguide.com: Canada's trusted resource for entrepreneurs and innovative executives

Written by PROFIT staff

It’s tempting to blame your clients for your cash-flow woes if it takes a long time to collect from them. But part of the blame may lie in your own bad habit of waiting for the end of the month to invoice. By invoicing the day the job is done instead, you’ll cut up to 30 days off the length of that receivable.

To do that, you’ll need to weave speedy invoicing into your operations, such as by making the appropriate people in your product/service delivery chain responsible for ensuring that an invoice goes out right away. They’ll need the right tools for that, such as having field workers use a mobile device to submit a verification that they’ve completed a job so an invoice can be issued.

Even going partway to immediate invoicing can make a major difference. “When we moved from monthly to weekly invoicing,” says Randall Litchfield, president of Inbox Marketer Inc., a Guelph, Ont.-based email marketing firm, “it brought our receivables down from an average of 78 days outstanding to 52.”

Originally appeared on PROFITguide.com