Invoicing Process (Life Jacket)
| Chelsea Flower Show 2016: Great Ormand Street Hospital Garden
Sponsored by Morgan Stanley. Designed by Chris Beardshaw.
Photo: Sarah Naybour
WHAT IS YOUR INVOICING PROCESS?
One of the hardest aspects of any client relationship is discussing money.
This makes it even more important for you to work through your financial processes so that you are clear about them, your communication is clear, and the client also understands their responsibilities.
You really don’t want to be flailing around in deep water without the life jacket of a clear process and not being able to answer financial questions.
Most problems are born from bad communication. Knowing your processes will help make communication clear.
| Schellevis concrete paving detail from 2016 Chelsea Flower Show.
Award winning show stand designed by Sarah Naybour.
INVOICING
Let’s take INVOICING as an example of one financial process.
Invoice process (First Phase) BRAINSTORM:
Step.1. Explain clearly at the consultation stage how the fees are structured and when they can expect to be charged. Talk through the Services Explained document with the client.
Step.2. Double check they are happy with this or have any questions.
For example: ‘Have I been clear? Do you have any questions about the payment schedule?’
Step.3. Include payment terms in the proposal document
Step.4. Include payment terms in the Contract
Step.5. Invoice (using Xero) 25% deposit within 24hrs of their acceptance of the proposal.
Step.6. Invoices are set to have a 7 day reminder. (Xero)
Step.7. Only begin work on a project / phase once they have paid
Step.8. If they haven’t paid within 7 days send the ‘Reminder Email’
Step.9. If they haven't paid within 14 days send the ‘Project on Hold email’
Step.10. Send a receipt (Xero)
Step.11. Invoice (using Xero) 75% balance once the Masterplan is completed
Step.12. Send a receipt (Xero)
Step .13. If either party exits the contract, then invoice as per the T’s & C’s.
The highlighted document templates are all linked with this stage and need to be prepared. These can be updated if you make any changes to your invoicing process.
| My crew. With their life jackets..
BE PREPARED.
HAVE A LIFE JACKET TO HAND
By thinking this through in detail you will be prepared for questions from clients, know what to do in times of trouble, and be able to instruct team members on how invoicing works in the company.
You also have a structure which can be used as the business grows.