Setting Up an Effective Billing System

A bill with checks and balances written on it | Collection companies Michigan


Do you have frequent problems with your customers becoming debtors? 

How can you prevent this? 

Setting up an effective billing system now can save you from collection headaches later. An effective billing system can help remind your debtor of payment, leave a paper trail, and potentially prevent customers from taking advantage of you. 

An effective billing system requires the following documents and steps:

  • Use a credit application so your customer agrees to basic terms upfront.
  • Obtain a purchase order number or form from your customer so your customer can’t refute at a later point and time that they ordered the goods or services from your company.
  • Invoice promptly to reinforce that your customer ordered the goods, you shipped them, and you expect payment for them.
  • Keep copies of delivery documents if applicable, so you can show that the ordered items were delivered.
  • Document changes to amount due. Track any adjustments to the amount your customer owes with credit and debit memos.
  • Use change orders to document your customer’s authorization for any modification of its orders.
  • Send a statement of account as a monthly reminder to your customer that they owe you money.

Should your customer dispute the account and you need to apply pressure for payment, your good billing practices will support your claim in the negotiating process and possibly even in court.

Experienced Collection Companies in Birmingham, Michigan

Have you implemented these items into your billing system, but are still having problems with debtors?

Muller, Muller, Richmond & Harms P.C. can help. If you’re a business owner, you should be spending your time conducting business rather than chasing down debts. Contact one of the most experienced collection companies in Michigan today at (248) 645-2440 for an immediate resolution to your collection matters. Let the experts worry about your collections, so you have more time to focus on growing your business.

Muller, Muller, Richmond, & Harms, P.C

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