We dive into the exciting world of accounting in this episode. Timely billing is the focus, and a worst-case scenario teaches the lesson. While the mistake is not directly mine in this story, I was a first-hand witness and deeply involved. That experience cemented my habit of providing regular status and gave me limits for billing flexibility. These steps have helped me avoid much loss and frustration over the years.
Timely Billing – And Payment Terms
Billing is not the only thing we need to do. There also needs to be follow-up and expectations set for when they should be paid. When those limits are exceeded, then we must have a plan for proceeding in a risk-appropriate manner. It is helpful to have in the back of our mind that someone might try to skip out on their bill entirely. That can be devastating for large write-offs. Therefore, we must stay aware of what we have at risk as we move forward with a project or customer.
The Lesson Learned
Not all customers are equal, nor are they all ethical. That can lead to situations where our time is wasted partially or entirely. When money is paid out to resources, as in this story, we can be out cash and time. That can devastate a business and even impact how much trust others have in us. Therefore, we must be as mindful of the commitments others have made to us as we are those we make to others.
If you like this season, you will probably like Scott Adams’ book, “How to Fail at Almost Everything and Still Win Big: Kind of the Story of My Life.”