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3 Simple Tips To Bill Management

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Tacking bills, yep, I know most people hate paying bills. We love to see money coming in but hate to see it go out. I have learned to change my mindset about bills. I am thankful I have the funds to pay my vendors. The cycle of business we must exchange money, not just collect. I also seek out quality products, so I appreciate making the payments to use those services or equipment. 

We live in a world that auto-draft is the best way to go or is required by most companies now. Either you pay monthly, or you pay annually. Typically, when we pay annually, we receive a discount. However, many select monthly because they are operating month to month, and that’s alright. What’s the best way to keep up with your bills? When you receive your vendor invoice, if it doesn’t automatically come out of your account, you will need to plan to process payment or process right away. Many people prefer to 30-45 payments or what is called payment on account (not a standard procedure for new or small business owners.).

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What is the difference between a bill or invoice:

When is an invoice a bill? An invoice is a bill when you receive the invoice from your supplier or vendor. Just as your invoice to your clients is a bill to them. Your bill will say invoice, but if you must pay the invoice, it’s a bill to you. 

Bill Management Recommendations:

  1. Review the bill (invoice) from your vendor. Is the amount correct? If not, reach out to your vendor for questions. Bills that are not auto-debited allow for time to discuss your bill. If the bill is auto drafted with an unexpected amount, still reach out to your vendor. Often the vendor will offer a refund IF, and I stress IF your bill is incorrect.
  2. Review the bill for future increases. When we invoice clients, we need to give the client notice of an upcoming increase. As the client, this time, when you receive your bill, your vendor needs to provide you with a notice of the increase. Prepare your budget for the addition or assess how often you use the service or product to determine if it’s worth the hike. 
  3. Add the bill to your calendar or if you use the software, add the bill to the bill section in your accounting software. Set up reoccurring bills in your software for the auto draft. 

 Learn more about my software recommendations, how to use the software to join the Ask the Accountant Membership. Or you can purchase a recording next month for only $25.00.  

Recommended Bill Management Applications:

 FileThis  - You can sign up for free

Hubdoc - Business document, receipt, and bill management.  Connects to Xero, Sage, Intuit, or CSV download to import into accounting software.   Reduceses double entry.

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