Wednesday, November 10, 2010

Cash Flow- Invoices

Cash flow is  very critical to the financial health of any business. Make sure you collect payments from your clients promptly.
  • Your invoices to client should be simple and easy to understand.
  • Call them right after you send out the invoices to make sure they have received it.  
  • You should start charging a late fee if you don't receieve the payment within  7 days, 2 weeks or 30 days after sending out the invoices. The amount of late fee should be stipulated on your original contract. 
  • You should charge a fee for all returned checks.
  • All work should stop until clients are current with their payments.
  • Put a lien on your client's project if he/she still refuse to pay.