One of the most common challenges agencies face is getting paid on time without chasing invoices or dealing with unnecessary complications. Cash flow is the lifeblood of your business, and any delays in payment can quickly spiral into stress, missed opportunities, and wasted time.
At Accountancy Extra, we’ve spent years perfecting a playbook of techniques to help agencies streamline their invoicing and credit control processes. While many of these strategies come into play after invoicing, there’s one critical step that every agency should implement before credit control even begins: invoicing the right person.
Let’s unpack how this simple adjustment can transform your cash flow and remove barriers to getting paid promptly.
Why Invoicing the Right Person Matters
Imagine spending hours chasing a payment, only to find out that the invoice never reached the decision-maker or that it’s sitting in an overloaded inbox. For many agencies, this scenario is all too familiar.
When onboarding a new client, we often focus on the excitement of a fresh project—the creative challenges, the potential revenue, the collaboration opportunities. What often gets overlooked in this enthusiasm is the practical side: how we’re actually going to get paid.
If you don’t establish the payment process during the initial client setup, your finance team may waste precious time hunting down the correct contact, resending invoices, or navigating approval bottlenecks. This delay can significantly impact your cash flow.
A Simple Process to Avoid Payment Delays
To prevent these issues, integrate the following questions into your client onboarding process. These steps not only save time but also set clear expectations, ensuring a smoother relationship and faster payments:
1. Do We Need a Purchase Order (PO)?
- Some clients require a PO for every project. If this applies, find out:
- How to request a PO.
- Who to contact for approval.
- Without this step, invoices without a matching PO may get rejected, delaying payment.
2. Who Do We Send the Invoice To?
- Don’t assume that the person commissioning the work is responsible for payments. Ask specifically:
- Which email address should we use for invoices?
- Is there a finance contact who handles billing?
- Ensure you’re directing invoices to the correct recipient to avoid delays.
3. What’s the Approvals Process?
- Some companies have internal steps for approving invoices, which could include manager sign-offs or budget checks. Clarify:
- How long the approval process typically takes.
- If there’s anything you can do to speed it up.
4. Who Do We Speak to If There’s an Issue?
- Establishing a point of contact early on ensures you know exactly who to reach out to for:
- Queries about delayed payments.
- Disputes over invoice details.
- Resolving account discrepancies.
Don’t Forget Payment Terms!
While asking these operational questions, make sure you also agree on payment terms upfront.
- Will payment be due in 7, 14, or 30 days?
- Are there penalties for late payment?
- Is there a deposit required before work begins?
By setting clear terms during onboarding, both you and your client are aligned from the start, avoiding awkward conversations down the line.
The Benefits of Getting It Right Upfront
Taking these steps during the client onboarding process has significant advantages:
- Faster Payments: Invoices reach the right person the first time, reducing processing delays.
- Improved Client Relationships: You’ll avoid misunderstandings and show your client that you’re professional and prepared.
- Time Savings: Your finance team can focus on strategic tasks instead of chasing payments.
- Better Cash Flow: With fewer delays, your agency’s finances will be more predictable and stable.
Start Implementing This Process Today
At Accountancy Extra, we’ve seen this approach save agencies countless hours and improve cash flow reliability. It’s a small change that yields big results.
If you’re tired of chasing payments and want to build a more streamlined financial system for your agency, take a moment to implement these steps in your onboarding process.
Want to go even further? Let us help you set up a full credit control system that ensures your cash gets into your bank account painlessly and on time. Book a call today to learn how we can support your agency.
This simple yet effective strategy is just one part of managing your agency’s finances. By taking proactive steps upfront, you can focus less on admin and more on growing your business.
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