Our invoice cycle falls due towards the end of the month to pay for the following month’s service cost in advance. We set our invoice cycles like this because we need to pay for staff wages, office rent, overheads, etc. in advance by the start of the following month.

 

Note:

The invoices are not fully one month in advance because 35% of the expenses need to be paid by us one month in advance such as rent, computers, private health insurance, food, etc.

 

We require our clients to pay on time for the following reasons:

 

    • To ensure VAs are still duly compensated in case a client decides to abruptly end their partnership with us.
    • To ensure the exchange rate doesn’t fluctuate too far from when we invoice clients. This could work for or against us, but we prefer the risk is removed by clients paying on time.

Invoices are sent by the 20th of each month and are due by the 25th. The first invoice is usually sent a week from the onboarding call.

Yes, you will receive automated reminders from Xero as well as from VAP on the following days.

 

    • 1st overdue day – Automated reminder from Xero

    • 2nd overdue day – Automated reminder from Xero

    • 3rd overdue day – A phone call/email from finance. The relationship manager/agent will also be notified on the same day.

    • 1st working day of the following month – If the invoice remains to be unpaid, the relationship manager/agent will call the client to advise that their staff member/s will be on forced leave starting the next business day until the payment is received. HR will also be notified to prepare the needed documentation.

    • The 2nd – 3rd working day of the following month – Relationship manager/agent will call the client to advise that their staff will no longer work for them. HR and recruitment will also be notified to proceed with the next steps.

The main reason is business efficiency. 

We batch both the creation of invoices and then the checking of invoice payments shortly after. We teach our team that some business processes must remain flexible, whilst others need to be fixed to avoid confusion and uncertainty, as well as keep all operations staff focused on serving our client-facing staff and clients. Billing is an item that can be controlled and made hyper-efficient if we keep all clients on the same billing cycle. This way the finance team can divert their energy to servicing the staff at all other times.


In the past, we did allow a few clients to move their due date as a trial, and those clients promised to pay by their new due date (which was the 7th of the next month), but for various reasons such as forgetting, bookkeepers, accountants, etc., meant that those invoices were further delayed.  This caused cash flow issues and more importantly, time and energy by the finance team which adds to the overall cost of the business and a distraction away from serving the staff.


When we allowed the trial to occur with a few clients, more clients found out and then started asking why they can’t have their billing dates delayed which goes against our item #1 and #2 above.


A good portion of our own invoices is due shortly after the fixed due date of 25th such as office supplies like coffee and water, cooked breakfasts via our 4  staff, office rent, etc. We are happy to accommodate one-off late payments for clients that have cash flow issues in a given month for a few months as needed.

No. We batch process all invoices automatically so that it is the most efficient use of our time and the lowest cost for clients The more efficient we are, the lower the cost to you.

 

If you aren’t able to budget for the invoices to be paid by the 25th and if you’re cashflow only allows for the payment to be made by the 28th, then you’ll need to be aware that our system will auto-generate a reminder on the 27th.

We do not charge for late payments. If an invoice remains unpaid, someone from our management team will call and email you on the 1st day of the next month to inform you that your staff will cease working and will be available for hire by new or existing clients.

 

This means you will need to start again with a new and untrained VA/team unless we hear back from you within 24 hours. This is to ensure that your VA/s are treated as though they are valued team members in your physical office whom you wouldn’t think to not pay on time.

 

We encourage you to speak to us about your circumstances so we can work on a solution together.