Quicker Client Billing for Web Design Agencies
Published: 02/05/2022
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We are writing this article for the payroll employees of web design agencies who are tired of the stress surrounding invoicing. Our goal is to show you it doesn’t need to be as difficult and time-consuming and to eventually help you find a way to quicker client billing and shorter payroll periods.
Since the company’s website is its storefront in our age of modern technology, businesses have long since moved away from free self-hosting services and instead are eager to work with professionals. The demand for sleek and modern-looking, flawlessly functional and intuitive websites created a wide market of creative web design agencies, offering their services for every imaginable industry. Of course, the labour of specialists is not free of charge. Their time and quality of deliverables are often reflected in their fees and these may range depending on the complexity of the project, unique requirements and many other factors.
With that said, unless the agency is strictly package-based, no invoice will be the same. This means the payroll team of the agency is under constant pressure to ensure the clients are billed the right amounts in a timely manner. And this is also their biggest dread when the client fails to clear invoices on time. In this article, we will try and alleviate some of the stress the payroll staff of creative agencies are under.
Everyone likes being paid - especially in the agency environment when the work done is tangible. Yet the scale of enjoyment when it comes to billing and invoicing, the processes required to receive correct payment, is much lower. Mistakes in it lead to awkward interactions, loss of trust and, ultimately, late payments.
In other words, while this is not a step that can be skipped, it has many stress-inducing aspects to it with very serious consequences. But here’s something you need to hear us out on - it shouldn’t be stressful. In fact, it can be turned into a powerful strategic element of your approach, granting you improved customer satisfaction through building a smooth client experience.
If you fall into the category of people who shudder at the very thought of invoicing-related procedures - that’s a sign. As described above, this is a vital component of the business and should therefore not cause you issues. If it does - that points to your process being outdated and in need of both reviewing and refreshing. Luckily, the technology of today is fully equipped to assist you in that.
Anything to do with invoicing is usually seen as bothersome, time-consuming and yet vital. From ensuring the invoices are put together correctly and branded accordingly to delivering them at the right time, to the right client, these repetitive tasks cannot be avoided. It can get especially time-demanding and mistake-prone when you’re dealing with large volumes of invoices. Luckily, the right invoicing software can take all this burden off your shoulders by both generating and distributing invoices in your stead. Not only will it save you heaps of time, but also give clients peace of mind to know what to expect in their invoice.
If the payment is recurring, you can set it as such without having to bother your client either - they will only need to enter their details once and the money will be transferred from their account to yours automatically on the set date. As a cherry on top, you can also automate a confirmation or a receipt that the payment has been received - just so the clients rest easy knowing there are no outstanding fees.
Automation heavily contributes to solving other common issues that are known to lead to slower payroll procedures. For example, instead of having to scan your spreadsheets and then dig out the emails to figure out which client hasn’t cleared their invoices out, you can instruct the software to send automatic follow-ups specifically to the accounts that haven’t paid yet. Depending on the software, you can even choose the platform these reminders are sent on.
While there isn’t much to do when trying to retrieve a late payment, you can speed client billing up by preventing it from happening in the first place. For example, you can set your automation software to send the client a reminder week prior to the payment. Additionally, as long as you let them know of this prior to signing the contract, you can use the software to implement late fees. For example, if such are your conditions, when the invoice is cleared a week over its due date, the client will be automatically charged an extra 25% of the total cost.
The essential component of any project is communication. Most agencies make the grave mistake of putting full effort into it when trying to win the client, but ease their approach once the contract is signed. This leads to all sorts of troubles, ranging from missed deadlines (on both sides) to having to redo work as it wouldn’t meet expectations. If you want to ensure quicker client billing on your projects, you must remain consistently eager to maintain open communication.
Client onboarding is your chance to communicate and manage client expectations for you. However, this is also where you set your expectations for them - and that includes billing. Nothing sours the experience more than money-related issues: be it charging an incorrect amount, not receiving payment on time or literally any other.
We strongly recommend automating the onboarding steps that are mostly bureaucratic in their essence. Such as contracts, non-disclosure agreements or any other documentation involved. For this purpose, you would need centralised document storage with an e-signing integration (Timesheet Portal, hint hint) as this would provide a seamless and smooth experience to both parties, exclusive of lengthy email exchanges. The time normally spent on this should be repurposed into discussing what both parties expect to gather from the project: agree on the timeframes, scope, communication, delivery and other factors that will set the tone for future work together.
Most miscommunication happens due to the excess of back-and-forth. Emails get lost, forgotten and misconstructed, which leads to delays in payments and potentially damaged relationships. Let’s face it - it is very frustrating when you’ve done the job within the agreed timeframe but have not been compensated in an equally timely manner. It is human to become a little irritated, which may reflect in how you communicate with the client - never a good thing, especially if the client picks up on it.
When you employ invoicing software to be a hypothetical middleman between you and the client, you reduce the risk of an emotion-driven response. Automated invoices and follow-ups have no emotional undertone to them, they are straight-to-the-point and matter-of-fact, therefore cannot be misconstructed. Additionally, if the client has questions in regards to the invoice, you can easily export all the relevant data used for generating it, like timesheets or expenses claims as they will be stored within the invoicing software.
The above-described ways of speeding up client billing may sound nearly utopian for agencies that have a chronic issue of having to chase the clients for money. However, process automation is more than easily achievable by relying on cloud-based software. There is a solution on the market that’s equipped to meet the unique needs of any web design agency - you just need to start the search with a specific list of features in mind. Since you are here, why not start with us?
Our Project solution is not limited to one market - in fact, the way and purpose you use it will depend on your goals and creativity. For creative agencies specifically, we offer to improve the speed of client billing through features such as an invoice generator, in-built invoice email distribution and automated reminders when the client is late with the payments. Of course, we house plenty of other features for agencies to benefit from.
If you work on a retainer basis, you will find our highly customisable and flexible timesheet system handy. You can adjust it to your agency’s unique needs, such as differentiating rates based on tasks, hours or days. We also have a module for expenses claims, complete with a bulk receipt upload system, as well as shared document storage with e-signing features for better legal document management. You will also love our customisable reporting tool, taking yet another dreadful manual task off your shoulders.
Client billing is among the core processes for web design agencies. It’s a pillar of the trust you build with your clients, as well as an assurance of revenue generation to assure the employees and the business expenses are paid. With so much at the stake, mistakes can be very costly which leads to the process being dreaded by many. The factor of human error, as well as the need to repeat the series of tasks, are very off-putting, making invoicing one of the most stressful payroll procedures.
However, it doesn’t have to be. In the era of technological advancement, we are now capable to pass these processes on to machines, who will not only carry them out faster but also reduce the chance of a mistake. In other words, if you are pursuing quicker client billing, you should turn to automation - from actual financial transactions to improved client communication, this may bring your company more fortune than you have ever imagined.
Ready to relieve some stress? We are all ears.