The value of prompt invoicing | A domestic tale

This a short and simple tale. No muss no fuss.

Here are two examples of invoicing that I’ve personally experienced as a customer. You can decide for yourself which response you’d prefer from your clients when your invoice lands.

• The first, a local carpet supply and fitting service. They always ensure their invoice lands on my doorstep the day after they have fitted new carpets. By this point, the room looks amazing, the carpet is barely walked on, and they have tidied up any mess left before leaving. I make a point of paying their invoice the very same evening, because I’m still reminded of the wonderful job they have done and want them to know it’s appreciated. The value of that invoice (a room that looks beautiful) is still fresh in my mind.
• The second, my plumber. I’m sure I’m not alone when I say that nothing is worse than a cold shower first thing in the morning. It actually makes me seriously sad if the water heating system breaks (which is often when you live in a village with frequent power cuts, and a hard chalky water supply). I immediately text my plumber, who is an angel, and will often resolve the issue that day or the next. He is so busy though that it’s often weeks before his invoice hits, by which time I’m over my crisis, and in all the joy of nice hot showers, I’ve forgotten about the payment and I don’t get round to paying him until weeks later. The work my plumber did was far more urgent and important to me than my carpets, but the urgency was removed from paying a job well done after time had passed.

The lesson from my domestic whirlwind? Prompt invoicing is vital – not only for catching your customers when they are still thrilled about your excellent service, but also for cashflow. Whether you are a service or supply business, you will be incurring costs for work from the minute you take on the job. So the sooner you invoice your customer, the better for cashflow and the risk of bad debts.

Have current funds tied up in working capital? Not sure how much money you have caught up in debtors and unvoiced work/goods? Get in touch with your client manager or call 01474 853 856