Mobile Contract Cleaning Billing Cycles – Get Those Invoices Out ASAP to Reduce Receivable Timetable

Let’s say that you run a mobile service business, and for the sake of argument let’s say this is a mobile contract cleaning business. One which you go out to the location of the customer, clean whatever it is you’ve contracted for, and then at the end of the month you bill them for all of your visits. Well, in this case, let’s say you did the service every Wednesday but on this particular month the last Wednesday occurred on the 24th of the month.

Well, in that case I would suggest that you send the bill out when your cleaning service vehicle comes back to your headquarters and have that invoice ready in the mail the next morning on the 25th. I would suggest that you do this rather than waiting till the last day of the month to send out the invoice. Why you ask? Well, if the last day of the month is the 30th then that invoice will not go out for another six days. The sooner the company that you are doing services for gets the invoice, the better chance that your invoice will be at the top of the pile at their accounts receivable department.

If you are dealing with a large company and you are working on a contract cleaning agreement, perhaps your agreement says that you will be paid in 30 or 60 days. In that case it makes sense to get the invoice in that six days early to get that clock ticking. After all, many large corporations now are trying to find ways to save money and increase their cash flow so they can show greater profits to increase their shareholders equity; meaning that they want to hold onto that invoice as long as possible before they pay it.

As I talk to many small businesses around the country, they tell me that the corporations may cut the check, but they will wait till the 30th day to write the check, then they will mail it, and then the small business has to wait for the mail as well. Even if the contract states that the Corporation they are doing business with has to pay a 2% penalty if they are over the 30 days. Interestingly enough, if you ask a consumer when they must pay their credit card bill, they will tell you that that credit card payment has to be in and cashed by the credit card company before the end of the time period.

It seems that it’s unfair for small businesses in this regard, and they are being taken advantage of, but more so the reason to get those invoices out at the earliest possible date. Indeed I hope you will please consider this, and rather than doing all the invoices at the end of the month, you should do them on the last day of service for that month, and get them in the mail as soon as possible. Please consider all this and think on it.