Is this how you run your professional services firm? May I suggest a new strategy – one adopted by attorneys a long time ago – deposit, retainers and payment before service, rather than after.
We are not in the business of banking or debt collecting. Lets stop being the last to be paid. I see firms hiring “collections manager” . What?!? Why?!? Further eating into your margins and profit.
Just ask for the money upfront and remove the issue all together.
Will clients protest? Maybe at first some long term clients may protest but I have never LOST a client over asking for a deposit and prepayment for services. We teach clients how to treat us. We can quantify the savings of moving your clients from post service billing to pre service billing. The math shows this amounts to real dollars.
Speak to other firms owners who have made the switch. You will find that cash flow vastly improves, stress is reduced and billing becomes an automated and simple process.
Interested? Lets discuss how this can work for you firm.