Employer billing goes wrong when it's done from memory. Put it on a fixed monthly routine: the census comes in, you check the changes, invoices go out the same day each month, payments are matched as they arrive, and late ones get a follow-up on schedule.
A sample monthly calendar
- By the 20th: each employer sends next month's census.
- 21st to 25th: compare with last month and confirm every change. Here's how.
- 26th: build invoices for next month, including any credits or back charges. More on adjustments.
- 1st: invoices go out.
- As payments arrive: match each one to its invoice in your books.
- Due date plus 3 days: reminder for anything unpaid. Here's the follow-up schedule.
Who does what
Name one person for each step. For example, the office manager can handle the census and invoices, and the bookkeeper can match payments and review A/R at the monthly close. The owner looks at a short summary.
Billing in advance or behind
A contract can bill in advance: the March invoice goes out March 1 for March. Or it can bill after the month. Pick one, write it in the contract and keep it the same for every employer. Billing in advance is better for your cash.
What to look at each month
- Total billed to employers, compared with last month.
- Members billed by employer, compared with the census.
- Open invoices by age.
- Any credits given, and why.
In a made-up example, you bill four employers $11,240 in March, up from $10,960 in February. The $280 difference should be explained by named changes: four new members at $70. If it isn't, find out why before the invoices go out.
What I'd do this week
- Write your monthly billing dates on one page.
- Assign an owner to each step.
- Tell each employer the census due date in writing.
Common questions
Can my membership platform do employer billing?
Ask your platform. Check whether it handles one invoice for a group, mid-month changes and credits before you rely on it.
Should I bill on the 1st or on each contract's start date?
The same day for everyone is easier. Prorate the first invoice if a contract starts mid-month.
What if an employer misses the census deadline?
Bill on last month's census and adjust next month. Put that rule in the contract.
Want employer payments matched and reviewed each month?
We reconcile every account every month and send your P&L and Balance Sheet by the 15th, so decisions like this start from real numbers. If that's what you need, apply to work with us.