Billing Process

An invoice is simply a detailed account, but for a business client. The purpose of the billing process is to collect the funds owed to customers. Outline your own billing process clearly so you can do the right thing in recovering your accounts receivable at the right time.

Verify the receipt of merchandise

The first step of the billing process is to verify that the customer has received the goods or services in acceptable conditions. It is not a prudent business practice to send a bill for goods that are not yet in the customer’s possession. If it is a product, check shipping tracking numbers, signatures and delivery weights to verify delivery. If it is a service, get a written confirmation from the client indicating that he has received the service as agreed.

Review terms and generate an invoice

After confirming the reception, review the agreement that guides your relationship with the client. The agreement must describe the payment terms (for example, 30 days from the billing date), the discount amount (if any) and who pays for the shipment. Use this information to generate the actual invoice, including the terms in the notes section of the invoice for the customer reference. Check the invoice against the associated purchase order and shipping details.

Issue the invoice

Finally, send your finished invoice to the client. You have three main options to do it, fax, mail or email. Next, you must track and track the progress of the invoice. When due, allow a short grace period before sending a reminder, then proceed with collection activities if necessary.

Draw a timeline

When starting the billing process, it is important to assign a deadline for each step. Some companies experience delays in payments simply by forgetting to send the invoice on time. Set a deadline for each step of the way, from the record of the delivery to the creation of the invoice and finally send it to the customer. Some invoice management programs perform all these tasks automatically according to the timeline you set.

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