Accounting: Automation & Payment Plans for your clients

Client purchases a package, but they will pay the total bill in installments.

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In this article, we will cover:

  • Definitions/Differences
  • Explanation
  • Example / Images
  • Try it together
  • Remind clients to pay
  • Recording payments
 
Begin in Settings > Accounting Set up > Text box
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πŸ“   Definitions/Differences: Standard Payment Terms / Unique Payment Agreements:
The difference between company's "Terms" or "legal response to non-payment" is different than a "Payment Agreement", which could be different per individual client.
Company Terms, would be details in the default "legal copy" box in Settings > Accounting Setup > Legal Copy field.
 This is where your "legal copy", company policy would be filled in: (image)
 
πŸ’²  Definitions/Differences: Statements / Invoices
There's a difference between an account Statement and an invoice.
A Statement is a historical list of purchases, payments, and current outstanding balance. 
Or explained another way:
A comprehensive service package statement will list the purchase of the package, the payments made on that package and the current outstanding balance.
The 'payment agreement' is reiterated in the text box 'Legal copy'.
Each business owner has the luxury of deciding payment agreements per client or if this is a standard payment plan for your company, edit the default language in Settings > Accounting Setup

⚑Shortcut:

  • When creating the Billing Profile for your comprehensive service, enter the total amount of the package.
  • In the student's Accounting tab, Add Time for the charged package.
  • Later, when recording time spent on that service, you will Add Time and choose the same comprehensive package.  This will NOT apply the comprehensive charge to the account again. It will only record that the time was spent for/on this package/service.

Try the steps in this example:

  • Example: A $1000 package was purchased. Using the Add Time button, choose the $1000 comprehensive package from the dropdown of billing profiles. 
  • After spending time with the client, Example: 1 hour, using the Add Time button, add 1 hour and choose the same comprehensive package from the drop down menu of billing profiles.
  • The 1 hour time will be applied against the original package amount. The original package amount will not be applied again - only the time will be recorded as having spend 1 hour, on this specific service for this client.
πŸ‘  You will know how many hours you spend on a comprehensive package at the end of the service. And make good business choices with good information.

πŸ€”  Remember to turn green each double person icon, in each line item you want to show on the invoice. Review the Print / Preview of the invoice.

 
Try it Now:

Set up Billing Profile

😎   Goto Settings > Accounting Setup > Add New Billing Profile > Comprehensive package
       enter cost,   ex. $1000

 

Apply charge to student

😎   Return to an Accounting tab of a student record.
      Apply Time Button
        Enter time (if you have some to enter or don't enter time)
        From drop down menu scroll to the Billing Profile you created.
        The package amount will populate the $ field. > save
 
😎   The line item $1000 will appear in Accounting Tab
       In the Notes field - tell your client what the payment agreement is. Ex.
 
"Contract Comprehensive Services, payment of $100 per month until full payment. Payment must be paid in full by Sept. 1 2020."
 
😎   Scroll to the far right of that same line, find the 2 person icon,
       be sure it is clicked green (to show to the parent).
 

Reminding clients to pay

😎   Accounting tab: Above the 2 person icon, find the clock.
       Click the clock.
You are now in Automated billing.
The client in our example,  has to pay you once a month.
Set the interval to monthly.
Set the start date.
(the day the billing should begin auto sending to the parents' email addresses. If you want the client to receive the statement on the first of each month, choose the 1st of the next month.)
Your client will receive a copy of the statement as it reads on the scheduled send date.
Your client will receive: 
  • A statement listing the purchase of the package, the payments made on that package and the current outstanding balance.
  • The 'payment agreement' is reiterated in the line item for the purchased contract, notes field. Or if this is a standard payment plan for your company, edit the default language in Settings > Accounting Setup
Image above
 

Recording Payments

😍  Each time the client makes a payment you will enter the payment in the Accounting tab.
Add Payment > save
The balances reduces by the payment amount. You may choose to write in the notes field,
"second payment"
There is no need to re-write the payment agreement, it remains on the invoice, with the agreement noted, you won't forget the agreement and neither will the client.
Auto-send will remain on until turned off.
(There is always the opportunity to turn off any singular line item by changing the double person icon from green to grey.)
 
Your client will receive: 
  • A statement listing the purchase of the package, the payments made on that package and the current outstanding balance.
  • The 'payment agreement' is reiterated in the line item for the purchased contract, notes field. If this is a standard payment plan for your company, edit the default language in Settings > Accounting Setup
πŸ˜€  When the client is paid in full, you will turn off the automated billing.
       And send them a final statement of paid in full, just by manually clicking preview / send.