Accounting and Billing for Service Businesses

Record the agreement before billing

The workflow starts with deliverables, exclusions, price, currency and acceptance. A project change needs an approved revision and a clear decision about any extra billing.

We map fixed fees, time based billing, milestones and recurring retainers. Each method defines the work period, supporting evidence and when the amount becomes due.

Separate the project measures

A project can have work completed, invoices issued and money received on different dates. Reports should make each measure visible. The accountant approves the revenue recognition policy.

For a 6,000 engagement in three 2,000 stages, the software must avoid billing the whole engagement and then billing the same stages again. Deposits and credits stay linked to the chosen billing structure.

Bring expenses and time into the project

Approved billable time and direct expenses can be allocated to the customer or project. Reimbursements and supplier costs retain their original documents and tax treatment.

A profitability report should identify its cost basis and exclude unapproved estimates from actual results. Budgets and cash forecasts show the assumptions used.

Give clients and finance a clear account history

The scope can include quotation acceptance, document access, reminders, statements and payment receipts. Automatic charging needs explicit customer authorization and a supported provider.

We test a deposit, milestone invoice, changed scope, credit and final settlement. Closing the project should leave an explainable receivable and delivery history.

Before you start