Advanced Billing Solutions, LLC

Two Billing Issues to Consider

Before using a billing services company to handle your lawn maintenance invoices, there are really two important points you need to consider.

What are they?

The first point you need to figure out is what system will be in place to automate your billing process.

Here’s what I mean.

Let’s say you have a list of customers.  You know which schedule they are on (hopefully).  Now, the question is, how will you get your cut list over to the billing company?  Electronically?  By fax?  Log in to the site?

And what about the other maintenance issues that come up (i.e. aren’t regularly scheduled).  How will you notify the billing company so that they can quickly bill for your time and effort.

Why does this matter?

Because the main reason to outsource your billing is to automate your cash flow.

You could use a software program instead of a billing company.  But then you (or someone else) will have to print invoices, stuff envelopes, and stick stamps on all the bills.

Now, maybe you enjoy doing this, but most people don’t.  So automating the process and creating a smooth workflow will ensure that your invoices go out the door on time.

Automate Your Billing Process

The second involves how quickly they will get your invoices out the door and delivered to your clients.  Here’s a simple rule that has yet to be proven false: the quicker you invoice clients, the quicker they will pay you.

But that’s only half the battle.  For example:

1. What system is in place to track unpaid bills?
2. Will they accept payment for you to deposit into your bank account?
3. Do you accept credit cards?  Will they process your payments electronically for you?
4. What type of financial reporting will you receive?
5. What systems are in place to send out “second notices?”
6. Are rebills included in the program fee?

Though it may seem like a lot to consider, setting things up properly in the first place will simplify the most important part — having money in your bank account.

So be sure to ask your lawn service billing company just what you’ll receive by outsourcing your billing headaches to them.

The bottom line is this: you want to maintain (or grow) your business.  You have crews to manage, customers to keep happy, and a thousand other business headaches to deal with on a regular basis.  Worrying about getting paid should NOT be one of them.

So let us help you get paid on time.  And hassle free.

Customer Billing Simplified…

So what key questions should you ask a billing company before signing up with them?  Here’s a short list for your review:

1. What is involved in the fee (i.e. postage, envelopes, etc)?
2. Is there a monthly fee, even during winter months/downtime?
3. What reporting is provided?
4. Will follow up invoices (i.e. Second Notices) be included in the program fee

If you’d like to discover how we can help to automate your lawn service billing process, visit the link to give us a call at 877-262-3712.  We look forward to helping you streamline your billing process.

I recently read an article in the New York Times that is relevant to your practice.

According to the article, your billable hour is now under siege.  In fact, here are the main points of the article:

• law firms are beginning to feel the pinch
• the recent economic downturn has created the climate for a different billing structure
• a new billing structure would better suited for clients to pay for legal services

Setting aside whether such observations are valid or not, it is certainly the case that money has “tightened up” of late.  So what can you do for yourself and your practice?

Here are three suggestions…

1. Focus on revenue producing activities
2. Automate your billing
3. Allocate time to market your practice

The first two involve freeing up time.  The last one involve allocating the new “found” time to grow your practice.

Let’s discuss each of these briefly.

1. Outsource Non-Revenue Producing Tasks

Let’s stick with the billable hour for purposes of quantifying your time.  If working directly on client cases generates $250 per hour, then your obvious goal would be to maximize your time working on client case work.

Which means, you need to minimize time spent on $25 or $50 per hour tasks, and focus your efforts on those RPAs (revenue producing activities) that bring the most “bang for the buck.”

Sounds simple enough in theory, but to survive (and thrive) today we all need to work smarter, not harder.

2.  Automate Your Billing

This point underscores two basic ideas.  First, make it easy for folks to pay you.  Second, get paid when you want to.

The fact is, we live in a cashless society.  I bet you that if you looked into your wallet right now, you probably have 4 credit cards in there.  And probably less than $50 in cash in there.

We prefer to pay with credit cards. Businesses as well as individuals.  So accept the darn things.

Now, every now and then someone mentions processing fees, etc.  Fine, with checks there is no processing fee to speak of.  But you have to chase after the checks, then send someone to cash them at the bank for you.

So your trading time for dollars.  You’re saving the processing fee, but spending countless valuable hours to save a few cents.

Does that make sense to you?

Secondly,wouldn’t you rather get paid when you want to?  Wasn’t that the idea behind retainers?

In automating your billing, you leave the invoicing, billing, and payment collection to an outside firm.  This accomplishes 3 tasks:

1. the service is tax deductible…
2. you don’t waste your valuable time (or your staff’s) on administrative issues…
3. you don’t have to be the “bad guy or gal” chasing clients and their payments.

Think of the last option as an example of “good cop/bad cop.” An outsourced billing firm can rebill clients that have failed to pay (assuming you don’t accept credit cards) saving your from feeling like a collection agency.

3. Grow Your Practice

The first two tips involved freeing up your time for more profitable tasks. And one of those should be growing your practice.

In marketing your practice, who’s in a better position than you to discuss the strengths of your practice?  No one.

So get out there and attract new clients.  Write articles. Attend networking events. Give seminars.

Just get out there and use “education based” marketing to inform, educate, and set yourself up as an expert in your field.

One final note regarding billable hours and flat fees for service.  These two billing methods are not so diametrically opposed as folks make them out to be.

If you choose a flat fee structure (or you already have one), the flat fee was calculated, in part, by an estimate of the total time to complete the project, and what you want to get paid for the service.

And that, my friends, is reducing your time and effort into a revenue/hour structure, even if folks don’t always think so.

To learn how our legal billing service can benefit you, you can leave a comment below (we will respond!) or send us a quick email to michael@yourbillingservice.com.  We look forward to hearing from you.

If you’d like to check out the NY Times article as well, just follow the LINK.