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Staggered Billing

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5 posts
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Member 5949
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Hello,

We are interested to know whether anyone staggers their billing in a month to even out cash flow?  We are not talking about milestone or project-based billing clients but rather "retainer" clients or "partial retainer" clients where you would bill some of them mid month and some of them at the end of the month.  Each client would only be billed once a month but there would be two separate billing cycles.

If anyone is doing this, is financial reporting an issue or more difficult to track? Is matching income to expense in the same period a material issue?

Thank you for sharing your knowledge!

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Tom Marx
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We have found that almost all of our clients pay monthly, so it doesn't matter when we send the invoice in a given month. In fact, most of our clients request all invoices emailed to them at one time.

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George Foster
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We have been billing clients twice a month for more than 20 years and none have complained yet. Fees get billed on the middle of the month billing; media 45 days before close. Many, many, many years ago I had to factor my receivables and that's why we started (create an invoice, create some capital). This helps us in cash flow, forces us to be quicker on collections and helps us stay on top of the financial status of each job.

Yes, it's a little more work (we use Advantage which helps) but would never go back to once a month.

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Lisa Capparella
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As with member 1995 we found that most of our clients pay monthly as well.  We split our billing out into cycles to help even out the work flow in the department.  Retainers and recurring billings issued in the first 3 days days of the month.  T&M for prior month is billed the 2nd thru the 10th day of the month (staggered as Account Managers receive, review and approve billing worksheets). Financials for previous month out on the 15th of the month. On the 4th week of the month we issue our Media billing.

Hope that helps.

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Vince
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HI Maribeth. Do you mind if I give you a call. You've triggered a unique secondary accounting question. Sincerely, Vince Dong

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