In order for businesses to grow it’s vital that clients are invoiced and cash is collected in a timely manner. Having an efficient and well-run process in place will improve your cashflow and reduce the risk of debts having to be written off.
Remember, you have the ability to set your own payment terms. For example, some services insist that invoices are prior to any sessions or you might provide a service where you can take payment by card immediately after a session. Some practitioners will invoice in the days following a session. If the latter then it’s important not to leave it too long when raising the invoice and always worth ensuring that the level of debt isn’t becoming too great with any particular clients. Always follow up with clients regularly if an invoice isn’t paid as per the terms.
Working with insurance companies can be a challenge as their payment terms will vary wildly. Don’t be afraid to refuse to work with any firms if their way of doing business doesn’t work for you.
It’s worth having a robust cancellation policy in place to reduce exposure from no shows. You may wany to allow some flexibility depending on your relationship with a given client but be wary of regular cancellations or any no shows.
If you’d like to discuss any of the above or have any questions, please contact us via the link below.
