TL:DR - we need your help on tightening up our expenses/invoice process
Hi folks! Pinging you to share some info on how invoices/expenses are processed behind the scenes, and also to crowdsource your ideas.
Our invoice cutoff date is the 20th of the month, however in practice, we often see late invoices coming through.
The 20th has been our invoice cutoff all along (hypothetically!) but we’ve not been strict on it to date as we wanted to make sure that people get paid and all is happy. That said, late invoices are having a knock-on effect.
In order to streamline our finances and automate as much as possible (which we need to do due to being a 2-person team), we now make all the monthly contractor payments from our Singapore bank account in one single bulk transaction, executed at the end of the month.
This cuts down our admin overhead significantly, which is great, but what it does mean is that late invoices hold up the payment for everyone else.
The workaround we’ve been using for late invoices is to create an off-cycle payment, but this generates additional bank fees (which we cover) - approximately $50.
For the reasons mentioned above, we’re now considering asking you to not submit your expense reports any later than the 15th. This was previously the 20th for contractors, but we found in practice that it just didn’t leave enough buffer to sort out any Q&A in time before the end of month bulk payment.
This is where you come in - do you have any creative ideas for solving this problem and getting people’s invoices and expense reports in timely?
Some ideas we’ve floated within the team, but not sure how you would feel about them:
- Splitting the bank fees with the core contributor in case of late invoices as a financial disincentive to submit invoices late
- Enforcing the cutoff date more strictly and holding payment of any late invoices/expenses until next month’s payment cycle (seems a bit Draconian?)
Anything else you think might work? How would you feel about this change? - We’d love to hear your thoughts. Once everyone’s had a chance to weigh in on this thread, we’ll ping again to confirm next steps.