The five steps between the hour worked and the invoice issued
Between the hour worked and the invoice issued there are five steps, and each carries its own characteristic delay: time entry, manager approval, rate and terms validation, invoice preparation and dispatch. Added together they explain why many firms invoice delivered work halfway through the following month.
Almost all of those delays are internal rather than the client's. That also makes them the easiest to fix: cutting two days from each step pulls invoicing forward by a full week, which in a business with monthly payroll has an immediate effect on cash and none on the commercial relationship.
- Time reminder the same day, not two weeks later
- Approval by exception, with only the anomalous highlighted
- Current rates tied to the contract, not hunted down monthly
- Billable amounts generated from already-approved hours