The days of “old fashioned” paper based invoicing is off the charts. However, many accounting firms still invoice traditionally and cross their fingers for the check to arrive. And to make this even worse, many are extremely apprehensive to pick up the phone and call those clients for payment and continue to wait for the check to arrive.
The reality is that most small businesses make a habit of paying slowly and live off the float. And because most accounting firms bill after services are performed and have very little on retainer, this creates and ongoing cash crunch. And, it means more write-offs. Ouch….
According to a variety of studies, here is what the “true cost” of paper based billing really costs you.