Is your business managing too many costs?
Do you want to lower the burden of expenses on various costs?
One of the ways to manage your business expenses is by applying the customer costs incurred. Let’s talk about the same in detail.
Any small business enterprise faces a few ups and downs while maintaining the business’s cash flow. Moreover, just like any other, business owners deserve to get paid on time. But starting, running, and managing a business is tough – easier said than done. In such a scenario, mistakes are bound to happen, for example- missing an item line while sending an invoice to customers.
To keep your cash flow in absolute balance, the 8 expenses that business owners should pass on to the customers. After all, if you have provided the best customer service and have done the best job possible for the client or customers, you are entitled to get paid for every minute and effort you have put in.
What are the costs that should be incurred by customers?
The main motto of any business should be on providing the best customer service solutions. Well, if you have done so, there shouldn’t be anything to stop you from passing a little list of expenses on your customer’s shoulder. Below are the 8 customer costs incurred.
1) Consulting fees
If you are meeting a client to discuss the scope of the project work and spending a considerable amount of time to reach an outcome to give an accurate cost estimate, then make sure to include this time as billable in your invoices. Of course, let me know about these consulting fees to the client beforehand to avoid any confusion. Many businesses also offer the first consultation free.
2) Travel cost
If your work requires you to travel for a particular project or work of a client, then you should ensure to charge the traveling cost in an invoice. Again, specify upfront to the client that you would expect this amount to be reimbursed when the invoice is issued.
3) Miscellaneous expense
This means that you should bill the client for expenses such as meals, transportation, or any incidental expenses while you are on the job for a customer. Receipts for a taxi, meal, hotels, etc., will suffice for you to claim back your money from the customer.
Any work you do for the client is accounted to be billable. This includes any research work and time you need to allow to finish the item. Mostly when you spend hours and hours in front of a computer to take details and make reports of it, etc., you can opt for a free invoice maker that has a time-tracking feature to help you capture every minute.
As a part of your business operation, you probably would have everything needed to get a job/project done, such as your hardware and software infrastructure, etc., in place. However, if your work requires you to spend on supplies like printing, copying specifically, etc., then include that in the invoice.
6) Mailing cost
If certain of the work done specifically needs to be shipped rather than to be sent electronically, in such cases, all the shipping cost, postage, and any other mailing fees associated should be charged to the customer upon finishing the work. This also includes boxes, mailers, and packing materials used for the project.
7) Credit card fees
Of course, it is in your interest to offer multiple payment methods to get paid early and maintain the business cash flow. Online payments are convenient and act in the interest of both parties. However, online credit card payment incurs an additional 2-per cent-plus transaction charge, which amounts to much when you start adding a few transactions over a while. It is up to you to charge this fee to the customer or not.
8) Pain & suffering
Every business has a few clients who would eat up your head for any and everything until the task or project is finished. And obviously, this consumes your time. In such a scenario, make sure to clear with such customers that only a limited number of consultations are free, and if you use them up then, you’ll bill for each phone call or email at a stipulated rate.
These are finally the eight important customer costs incurred. Focussing on customer service will always keep your customers happy and engaged. Later, they can be asked to manage a few expenses independently.
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