No, time-based invoicing is not just for lawyers!
Agencies, consultancies and service companies (architects, IT services firms, design offices, etc.) spend 10 to 30% of their overall time creating, following up on and communicating about invoices in progress or to come.
Between managing administrative tasks, tracking billable hours using a time-based management tool, and issuing invoices, it’s easy to feel overwhelmed. The right balance has to be struck between a firm reminder at the right time, good communication between the operational and accounting teams, and the choice of automation, which can free you from many constraints.
What are today’s challenges, and what can you do to overcome them? Let’s take a look at how you can spend less time billing by the hour.
Why is time billing a challenge?
Time billing is often seen as a chore by teams, but it also raises crucial questions:
- How can you ensure accurate, transparent billing for your customers and employees?
- How can you prevent the billing process from becoming a source of stress for your teams?
- How do traditional billing methods affect productivity and team morale?
Time-based billing can lead to :
- A loss of motivation among employees who feel under pressure.
- Errors or omissions in the calculation of hours, which can lead to financial losses for the company.
- Administrative complications that consume precious time, to the detriment of strategic missions.
Negative impact on team motivation
When employees spend more time accounting and invoicing than performing their core tasks, it can have a demoralizing effect. This feeling of frustration is often linked to the impression of wasting time on administrative tasks rather than contributing directly to the success of the customer or project.
A common example is that of freelancers who, although accustomed to managing their own invoicing, may feel overwhelmed by the constant need to keep meticulous track of their billable hours. This stress can distract them from their core missions, adversely affecting the quality of the work delivered and, ultimately, customer satisfaction.
The financial risks of incorrect invoicing
Billing errors can have serious financial consequences. A misapplied average daily rate (ADR), missed hours or poor follow-up on unpaid bills can result in substantial loss of revenue. What’s more, late or incorrect invoicing can delay payments, affecting the company’s cash flow and jeopardizing profitability.
- The impact of poorly managed invoicing in an ESN
Let’s take the example of an ESN (Entreprise de Services du Numérique) that invoices its customers on a fixed-price basis.
If the hours worked are not accurately tracked, or if additional tasks are carried out without adjusting the fixed-price price, the company can find itself losing money on every project. Worse still, if these errors are not detected in time, they can damage the relationship with the customer and jeopardize future assignments.
What are the alternative methods?
Flat-rate billing: simplicity and predictability
Flat-rate invoicing is a solution often adopted by consulting firms, freelancers and even some ESNs. Voici pourquoi :
- Cost transparency: customers know in advance how much the job will cost, with no surprises at the end of the month.
- Saves time: no need to keep track of every minute spent on a task, simplifying administrative management.
- Precision: as costs are fixed in advance, the risk of errors is minimized.
- Flat-rate billing in a consulting firm
A consulting firm that adopts flat-rate billing for its assignments can offer total transparency to its customers. For example, a firm might offer a fixed price for a company audit or the implementation of a new process. The customer knows exactly what he’ll be paying, and the firm can concentrate on getting the job done without worrying about meticulous time tracking.
- Balancing time measurement and invoicing at Smash, a Paris-based consultancy using Furious
Time packs and subscriptions: flexibility and loyalty
Time packs and subscriptions offer the flexibility that customers appreciate customers and service providers:
- Anticipation of needs: the customer buys a certain number of hours to be used according to his needs, which offers a degree of predictability.
- Long-term relationships: subscriptions build customer loyalty while ensuring a steady revenue stream for the company.
- Adaptability: ideal for one-off assignments or to manage peaks in activity.
- Using time packs in an ESN
In an ESNhourly packs can be used to offer maintenance or support services. For example, a customer can purchase a 50-hour pack to be used over a three-month period for one-off interventions. This model enables the ESN to plan its resources more efficiently, while offering maximum flexibility to the customer.
- How Rébellion optimized its billing with Furious Squad
The Rébellion advertising agency – some sixty employees employees – adopted Furious as its ERP several years ago to manage invoicing for its projects complex processes, but also all its operations (project tracking, CRM, quotations, HR). Thanks to automation, the company has been able to reduce the time spent on administrative tasks by 10%, while increasing the accuracy of invoices sent to its customers, whether inbound or outbound.
As a result, monitoring of the company’s cash flow has improved, and staff have been able to concentrate on more strategic missions.
David Aït-Ali, co-founder of Rébellion
Furious enables us to monitor both outgoing and incoming invoices very closely. With the purchase order system, purchases are directly linked to projects. In outgoing invoicing, our invoices are automated and our customers can sign directly using the electronic signature.
How can technology transform billing and financial management?
Automation: an invaluable ally for greater efficiency
Automating invoicing reduces errors and saves valuable time. Here are just a few concrete benefits:
- Reduce errors: by automating calculations and issuing invoices invoicesyou minimize the risk of human error.
- Saves time: automation lets you concentrate on more important more strategic tasks more strategic tasks, freeing up time for higher value-added missions.
- Customer satisfaction: fast, accurate invoicing improves customer relations.
- Example of the use of the Furious tool for billing automation
Furious makes invoicing child’s play. Thanks to automation, you can :
- Generate invoices in a click: based on billable hours billable hours and estimates, the software enables you to issue invoices quickly and error-free.
- Track hours consumed in real time: keep track of your projectsTrack your projects, hours worked and associated costs in real time, for optimum management of your business.
- Automatic reminders: in the event of non-payment, the software automatically sends reminders notices, saving you repetitive tasks.
The benefits of a clear, projected view
Having a clear, projected view of your finances thanks to technology can :
- Optimize budget management: helps you plan and allocate financial resources more effectively.
- Cash flow forecasting: to manage costs and ensure financial stability.
- Facilitate decision-making: provides valuable financial data to inform strategic decisions.
How a consulting firm uses financial reports for better management
Progress Partner, a 30-strong consulting firm that uses Furious Squad to generate detailed financial reports, has been able to better plan its assignments and anticipate future expenses. Thanks to accurate data, the firm was able not only to improve profitability, but also to strengthen the confidence of its customers by offering total transparency in the management of their projects.
Before Furious, they were using two separate systems, which created holes in the racket and a certain amount of volunteer work for the customers (no invoice).
Thanks to Furious, its global view of financial operations and automation, they have gone from 30% of unpaid invoices to 9%, in a context of growth.
Pascal VanBerten, Managing Partner ProgressPartners
Today, we only use the data entered in Furious to monitor project profitability and consultant schedules. We've saved 20-30% on invoice management. The team hasn't grown significantly, but we manage 4 to 5 times more invoices than before.
How do you ensure accurate and fair billing?
Time-based invoicing is a delicate subject that requires special attention to maintain a healthy customer relationship and stable financial management.
Avoid common time billing errors
Time billing can be fraught with pitfalls if not managed correctly. Here are some strategies for avoiding common mistakes:
- Using billing software: adopting a tool like Furious, which precisely tracks the work devoted to each project or assignment.
- Establish clear processes: have guidelines for time tracking and billing to ensure consistency.
- Communicate openly: ensure transparent communication with customers about methods and prices.
Ensure transparency and accuracy in customer billing
Transparent and accurate billing is crucial to building and maintaining trust with your customers. Here’s how you can do it:
- Itemize invoices Invoicing: provide detailed invoices that clearly explain the work carried out and the associated costs.
- Establish fee agreements: discuss and agree billing rates and methods in advance.
- Offer flexibility: propose various payment options and be open to discussion regarding payment terms.
- How can I find out which times have been billed?
To see which times have been invoiced or not, you can use our “unbilled time” widget in Furious Squad. This widget lets you filter by customer, contract, project, and, by checking the boxes, create invoices on the fly for work performed.
- The advantages of using invoice creation with Furious Squad
Here’s an overview of the benefits of using Furious Squad as a management tool:
- Flexibility in issuing documents: you can bundle various services and projects, and link multiple budgets to a single file.
- Customized document issuance: create personalized documents that precisely meet your company’s needs.
- Reminder automation: automatically send reminders for overdue payments, reducing the time spent on repetitive tasks.
Adopt modern methods
Go to less time to invoice doesn’t mean neglecting accuracy or transparency. With the right tools and methods, you can :
- Optimize your work: by adopting practices that reduce the time spent on administrative tasks.
- Improve customer relations: thanks to clear, precise and fast invoicing.
- Increase your profitability: by reducing errors and automating processes.
With Furious Squad, you have everything you need to effectively manage your business and spend less time billing for time spent.
So, finally, how can you spend less time billing for time spent?
To solve this problem and save you time, Furious lets you automatically track the time of your teams – whether or not they are attached to a project – and generate invoices in a single click, thanks to automated billing based on the time spent during the selected period.
You can send your invoices automatically, as well as reminders notices in the event of non-payment, and of course your cut-offs are precise and real-time.
You have a clear, projected view of your agency’s financial situation. agency and recover cash more quickly. The essential best practices of a pre-accounting tool.
So, when do you start being Furious?
