Implementing Hard deadlines for Processing transactions to improve Cash Flow

Your business model and how you structure your sales contracts has a lot more to do with your cash flow than increasing billing efficiency. You are hampered/hindered by this constraint. How you encourage your customers to pay for bills earlier than what is in their contracts or when they are due is key.

Even if you bill earlier, if the customer/client is cognizant of their own cash flows, they will pay when they are due and not a day earlier. There has to be motivation (if not your luck or just handing them the bill earlier) for them to pay earlier and that incentive cost trade off has to be weighed by your company.

Thank you for your response, do you have any examples of sales contracts I could overlook and compare against for improvement?

Daniel, it is about the provisions in the sales contracts like due dates, credits, early payment options. etc. It is about your company's revenue business model. These are your constraints.

What are your incentives for the customer to pay early than their stated due dates in the sales contract? Does your business revenue model require them to pay upfront or on the first day of the month? Do you extend them a 30 day credit making it an in-arrears kind of payment? What is your Receivables Turnover? Do you offer a yearly subscription? Is there an incentive to pay a yearly subscription? These are some of the questions you should be asking to get a handle of what you should be doing to improve your cash flow.

You should make your billing process efficient and timely. But do not expect a big jump or improvement in your cash flow by sending them the bill early. Yes, there is a chance that some customers might pay up earlier than their due dates because they received the bill earlier and they did not check their records but it will not be a sustainable improvement.

Your wisdom is much appreciated, I understand.