Time and billing issues can cause the single fastest way to put yourself out of business overnight or put yourself in the position of financial strain. Many people neglect to manage their time and billing properly and they pay for it in the end.
Time and billing entails payment tracking and invoicing. If you do it right you will get paid well and get paid fast. If you do it wrong, well, you might not get paid at all. Each of the following common time and billing methods have pros and cons as follows:
Time and Billing Through Automatic Credit
With this method of time and billing you grant everyone a certain amount of credit. You're at relatively low risk, what's the most you'll lose Cheap Adidas NMD Human Race , $250? You attract clients with this method. However, if you don't say what the terms are, most people are going to assume it is net 30. If you are not firm and assertive with this time and billing practice those 30 days quickly turn into 60 days and more. If you extend credit to everybody, odds are you will lose sooner or later. That is not a good thing at all. Despite its marketability this is not a recommended method.
Time and Billing With Minimum Deposits
The second time and billing practice is to require a deposit before starting a project. Typically the deposit ranges from 25% - 50%. If you are really aggressive it's 100%. Collecting the deposit is often the easy part though. With this time and billing method how do you know when the project is complete? For this time and billing method to work you need to make sure the end point is very clearly defined. You also need to have the luxury of time between engagement and work. What if the deposit check bounces after you've started Cheap Adidas NMD R1 , and perhaps finished, the work?
Time and Billing Using a Merchant Account
This is a preferred time and billing method. The first project is done on a credit card authorization before you even start. A signed proposal or quote is faxed back to you with credit card information. You pay a small fee, 2 陆 to 3% to the credit card vendor, but at least you don't have to beg for payment. You don't have to take the risk of not getting paid. You don't have to go through the hassle of checking credit references and taking credit applications for a one-shot deal. The credit card charge can be disputed but this does not typically happen if the work is completed satisfactorily.
The Bottom Line on Time and Billing
Every method of time and billing has its pros and cons. What has proven to work best in the computer consulting industry is to use merchant accounts. This does not mean that time and billing using credit or deposits is wrong Cheap Adidas NMD R2 , it simply means that the least risky method is the use of credit cards.
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