Hello everyone:

Hope you are having a wonderful work week so far! Okay so I'm thinking ahead and since I started my virtual assistant business in July 2008, I've never really had a billing policy to send out to current and/or prospective clients - only because I have not encountered a problem with a client paying.

So I'm trying to figure out what to include in my billing policy template to send in for the new year? Also, how far in advance should you inform your clients of the new billing policy?

These are some items I plan to include, but want to know what other VAs are including as well:

• Late Payment: 2% Interest after 30 Days
• Late Payment (> 45 Days) - No Services Will Be Rendered and/or Services Terminated Effective Immediately
• Check NSF Fee - $25.00 (Not sure if I want to accept checks or not)
• Forms of Payment Accepted (Paypal - Visa, Mastercard, American Express, Discover)

The above items are for my hourly clients and flat-rate clients. However, for my flat-rate I was thinking if payment has not been received within ten (10) days then the next project cannot be completed? Is that too strict?

Is there anything I am missing or should include? What forms of payments do you accept for your business?

I'm looking forward to your responses. Toodles!

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Aspiring Virtual Assistant - Jean

Hi there,

I'm in the final stages of opening...so I'm definitely a rookie at this point. But here's what I think:

Giving 44 days of your services before you stop rendering services is too long for an hourly/per project client. I would make it much shorter, perhaps 7-10 days???. I feel if a client knows they have 45 days, that may work against you and could slow your income flow down. I think when you're a new business owner, you need to encourage payment sooner to maintain a more fluid cashflow...does that make sense?

Sharice

Also in terms of checks, I'm with you on that. I'd rather the instant payment, instead of the headaches that can come with checks.

Hello,

Here's my billing policy that I use: Payments are due within 15 days from date of invoice. Invoices past due 30 days will incur late fee charges per every 30 days from date of invoice. New clients are required to pay weekly for the first 60 days of service. Once a client is established, billing is completed once a month. Services will cease immediately on all work for any outstanding invoices that become 30 days past due for existing clients.

I prefer late fee charges rather than interest charges based upon billing amount. Late fee charges are $10/per invoice. Except for a major blunder I did when I first started, all of my clients are excellent about paying immediately.

All of my contracts carry the billing terms. Any changes to the billing terms, the client is to be notified 30 days prior per the wording in the contract they sign.

Jean, you're a lot more lenient than most VAs I know - here's a rundown of our current policy (I think this is version TEN - I've adapted this over the past three years as new issues have prompted me to do so at times)


TERMS:
Invoices are due on Net 14 terms and are payable via Paypalf or by check on Net 7 terms for select clients only.
Invoices not reconciled within 15 days incur a $25 or 5% of balance, whichever is greater, late payment penalty.
Invoices not reconciled within 30 days incur an additional $50 or 10% of balance, whichever is greater, per month until reconciled.
Please feel free to contact us with any questions or concerns regarding your invoice or payment.

I know this is steep - it's meant to be. We don't work on credit - and if you don't either that needs to be very clear or you'll end up with people ordering all kinds of work they haven't budgeted for. Then you've got the mess of trying to be diplomatic while waiting for your invoices to be reconciled for fear of losing the client - so not worth the energy or stress.

Obviously, at a certain point we'd stop work if it became clear we weren't going to get paid -fortunately between this policy being included on every single invoice that goes out and our taking deposits from new clients (against six months regularly paid invoices) I haven't had a late payment in almost two years.

Hope that helps!

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For me, my billing policy is listed in my contract that all clients sign before any work begins. Payment for all hours within a month for retainer clients is due before work begins. Project clients pay 50% of project total or a $200 deposit before work begins. Retainer clients are due in full at the beginning of each month. Payment is due within 7 days of the invoice. Payments are considered fully earned and are non-refundable.

Payments not received when due result in immediate cessation of work. Monthly late charges of $10 or APR 21% whichever is greater on unpaid balances every 30 days. $40 NSF check fee. Any property or materials belonging to the client can be retained as security until all claims have been resolved to satisfaction

I accept business/cashier checks, PayPal and Google Checkout.

Great info... some of it seems harsh, but then again, like Tess said: "We don't work on credit". Kim, have you ever had to hold a client's property or at minimum, had a client balk at this clause?

I am also trying to figure out all my policies and such for my business. I am now working on Elance.com and Odesk.com and they have payment arrangements on the site. I believe once I get my first client off the sites, I will mainly use paypal for payments. If I have a client located close to me I may accept check or cash. I am kind of confused when it comes to all the policies, etc. that I have to put into place. I am hoping to find a few resources that may give me examples of policies and things.
Thanks.

I'm on my 1st revision. Just sent out a revised billing policy @ the beginning of the year as I was not implementing any real set procedures other than "due on receipt". lol

My new terms, which I stated will be effective March 1, are as follows (not verbatim):
1. due on receipt - though...
2. pay by 1st of month following receipt of invoice (this is pretty lenient I know)
3. outstanding balances will incur 1% late fee each month invoice remains open (on every open invoice)
4. if no payment by 1st of month following receipt of invoice, in addition to late fee, work will be suspended until resolved.

I'm so not an accounting person, so these are just my initial guidelines I'm putting in place - & I imagine they'll change over time. I too accept PayPal or CC's via PayPal, & checks.

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shana
www.piedmontjewelbox.com