What bookings to billings means
A booking is a signed commitment from a customer. A billing is the invoice that goes out for it. Collections is getting that invoice paid. Together they make up accounts receivable, and each step usually belongs to a different person.
Where it breaks
- Sales closes a deal and finance finds out late, or not at all.
- The invoice goes out with the wrong amount, contact or purchase order number, and the customer's system rejects it.
- Nobody is assigned to follow up on overdue invoices.
- Renewals and price changes are not reflected in what gets billed.
- Leadership can't see what is owed, by whom, and how overdue it is.
How to fix each handoff
Booking to invoice
Define what finance needs from every closed deal: billing contact, amount, schedule, payment terms and any purchase order. Make it a required step of closing, not a favor.
Invoice to customer
Invoice on a fixed schedule. Check each invoice against the contract before it is sent. Ask new customers up front how their accounts payable process works.
Invoice to cash
Write down the follow-up sequence: a reminder before the due date, one on the due date, and set steps after that. Name who sends each one and when an overdue account goes to leadership.
Reporting
Review an aging report on a schedule. It shows every unpaid invoice grouped by how overdue it is, and it is the fastest way to see whether collections is working.
Tools help, once the process exists
Accounting systems such as QuickBooks Online, Xero and Sage Intacct can send invoices and reminders automatically. They automate the process you give them. If the handoffs above are undefined, automation just sends wrong invoices faster.
We map your bookings-to-billings process, fix the handoffs and can run invoicing follow-up for you. See fractional operations management.