3 Simple Billing Procedures for Independent Project Manager - Susanne Petersson

Susanne PeterssonLean Six Sigma Green Belt (LSSGB)

Why write Procedures?

� Procedures offer a basic framework, allowing

� Others to assist effectively

� Consistency of activities – of results

� Reduction of sticky pads, excessive

notes

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Simple Billing

Procedures

Why write Procedures?

� Procedures offer a basic framework, allowing

� Freedom from confusion

� Fewer headaches!

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Simple Billing

Procedures

The 3 Essential Procedures are:

1. Setup new Client

2. Bill a Client

3. Collect past due Amount

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Procedures

Before detailing the 3 essential

Procedures –

… establish a process to

Get OrganizedSusanne Petersson 5

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Procedures

Process to Get Organized

A. Determine means of hiring You accept

B. Identify Your contact Persons, Roles

C. List Your essential Documents

D. Define Tools You will use

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Procedures

A. Hiring Means

� Identify what means of hire you accept

� Most common in the US are: W-2, 1099,

Corp-to-Corp

� Become familiar with basic information

required on contracts

� Understand the differences

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Procedures

A. Hiring Means

� Know your preference(s) and reasoning

� Estimate the % of your projects related to each

� By invoice amount or invoice quantity

� Add a note about trend based on

Client or own preference

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Procedures

B. Contacts – Persons, Roles

� Identify who is currently involved

� Outline who is doing what (tasks)

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Procedures


� Here is a list of common roles:

� Contractor/Project Manager

� Sales Prospecting

� Your Hired Assistant

� Billing Accountant

� Tax Accountant

� Client

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Procedures

You may be performing most of these roles!


� Here is a list of common roles:

� Contractor/Project Manager

� Sales Prospecting

� Your Hired Assistant

� Billing Accountant

� Tax Accountant

� Client

� Match tasks with each role


Simple Billing

Procedures

C. List essential Documents

� Contract Form

� Prospect/Client call or contact log

� Invoice Form

� Billing spreadsheet


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Procedures

D. Define Tools to use, for:

� Communication

� Documentation

� Storage, Retention [End of Life]


Simple Billing

Procedures

D. Define Tools to use, for:

� Communication

� Documentation


Develop consistent actions from project-to-project


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Procedures

D. Tools to Use – with suggestions

� Communication

� Personal – telephone, beeper, paging

service

� Meetings – Skype, Go-To Meeting,

WebEx

� Networking – business cards, pen,

notepad, cellphone, business card

reader appSusanne Petersson 15

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Procedures


� Documentation

� Forms identified from section C:

� Manual – purchased at office store

� Electronic – setup on-line

� Transmission – postal address, stamps,

internet access

� Equipment – laptop, printer, software,

scanner, shredderSusanne Petersson 16

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Procedures


� Storage, Retention

� Manual – file folders, cabinets

� Electronic – pc/laptop folders,

thumb/external drive

� Cloud – Dropbox, One Note, Google

Drive, Social Safe


Simple Billing

Procedures



� Manual documents – paper shredder

� Electronic copies – anti-virus software

� Cloud documents – service provider or

anti-virus


Simple Billing

Procedures



� Manual documents – paper shredder

� Electronic copies – anti-virus software

� Cloud documents – service provider or

anti-virus

� Consult your tax accountant for appropriate timeframes


Simple Billing

Procedures

Once You are organized:

Determined acceptable form(s) hiring

Identified contact Persons, Roles

Listed essential Documents

Defined Tools needed


Simple Billing

Procedures

Once You are organized:

Determined acceptable form(s) hiring

Identified contact Persons, Roles

Listed essential Documents

Defined Tools needed

You’re now prepared to outline the 3 essential Procedures


Simple Billing

Procedures

How to outline each Procedure –

� Consider your interactions

� Communicating with a Prospect

� Completing the work


Simple Billing

Procedures

How to outline each Procedure –

� Document 3-5 primary steps

� Define Who

� Match person with activity

� Show hand-off’s


Simple Billing

Procedures

Recap – 3 Essential Procedures:

1. Setup new Client

2. Bill a Client

3. Collect past due Amount


Simple Billing

Procedures

1. Setup a New Client


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Procedures

Contractor Present to Accountant documents

provided by Client

� General instructions

� Contact details

� Billing instructions

� Reimbursement parameters



Simple Billing

Procedures

Provide details to Client billing

contact

� Contractor contact information, EIN

� Funds receipt preference

� Address: bank and/or home

Accountant



Simple Billing

Procedures

Create invoice template

� Include data required for payment

� State agreed-to payment terms

� Save to assigned document retention location(s)

Accountant

2. Bill the Completed Project


Simple Billing

Procedures

Provide to Accountant:

� Client name

� Service(s) provided

� Total time spent per date(s)

� Project name (job, program)

� Date(s) performed service(s)

� Reimbursement slips

Contractor



Simple Billing

Procedures

Confirm data

� Client name & address

� Billing contact name

� Preferred means of contact

� Project dates and amounts

Accountant



Simple Billing

Procedures

Prepare invoice document

� Select Client billing template

Send invoice to Client contact

� Send via agreed-to means

� Ensure a copy available to Contractor

Accountant



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Procedures

Accountant File invoice copy

� Save to assigned manual, electronic, cloud locations

Update data analytics

� Add amount due to spreadsheet

� Store updates to assigned locations

3. Collect Past Due Amount


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Procedures

Contractor

Accountant

Advise Accountant of non-receipt

Communicate with biller contact

� Initially via agreed-to means: email, portal, etc.

� If no response, follow up via call

3. Collect Past Due Amount


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Procedures

Accountant

Contractor

Report on result of communication

� Advise Contractor

� Update analytics

Deposit funds!

Disaster may strike at any time –

� Store Documents in 4 locations:

� Paper form – in folders

� Electronic – on hard drive

� Electronic – on external drive

� Electronic – cloud-based storage


Simple Billing

Procedures

Disaster may strike at any time –

� Store Documents in 4 locations:

� Paper form – in folders

� Electronic – on hard drive

� Electronic – on external drive

� Electronic – cloud-based storage


Simple Billing

Procedures

Also Client & Contact details!

By writing basic Procedures, You

� Express your diligence

� Maintain consistency

� Make it possible for others to help


Simple Billing

Procedures

By following Your established

Procedures, You

� Reduce your headaches

� Improve your cash flow

� Spot trends

� Identify opportunities


Simple Billing

Procedures

My name is Susanne Petersson

This is the process I established for a busy independent

contractor seeking to increase payment turn-time

while reduce time spent on paperwork.

I have 20 years experience identifying opportunities

and leading software- and process-related projects in

a variety of functional areas.


Simple Billing

Procedures

I hope you found this document useful!

Susanne PeterssonLean Six Sigma Green Belt (LSSGB)

3 Simple Billing Procedures for Independent Project Manager - Susanne Petersson

Small Business & Entrepreneurship

Transcript of 3 Simple Billing Procedures for Independent Project Manager - Susanne Petersson