By Lisa Waggoner

Everyone knows that billing makes or breaks the agency. But only the smartest agencies know the real secret: bill fast, bill often, and bill right the first time.

While it may seem obvious, billing is one of the most vulnerable parts of the client relationship. It’s where a lot of accounts are lost. And it’s certainly where the most uncomfortable confrontations take place. That’s why avoiding the common billing traps is so important (and, of course, one of the reasons you bought Clients & Profits).

The answer is to bill correctly, consistently, and on time. Most clients don’t like late bills, and they certainly don’t like surprises. Getting an invoice two months after the job was finished is one thing, but when the invoice is 20% over budget—well, that’s a shock. In any event, your cash cow is hammered. And the more time it takes to be paid, the more desperate you might be to take any amount.

Do this and your margins disappear. But fight you do because billing produces the all-important cash cow that keeps companies going.

You struggle to get the billing out.

It’s frightening to think of what would happen to cash flow if you didn’t. That’s why efficient, timely billing is critical.It’s the only way to assure your cash flow, which means more money for acquiring the new business and the skilled staff you need to grow. It’s also one less worry, and helps you to focus on the future instead of worrying about today.

Make it predictable

Successful billing starts from the moment you first talk with the client. If your client knows that you plan your billings in the same way you plan a great ad campaign, then billing isn’t a surprise. The trick is to make it predictable. It’s perfectly reasonable for clients to know what to expect on their invoices. So what's the foolproof solution?

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