Are you invoicing 100% of your Sales?
Management relies on staff to process invoicing – correctly, completely, and accurately.
This can be challenging for businesses that customise invoicing for;
– hire rental
Generally, when a job or project is successful, the contract is stored on file and the project commences.
📍At some stage, the client may vary the scope.
📍And additional work commences.
That is fine if communication is clear, transparent and the administration team follows on from this change.
Issues arise when processes do not align tasks for the following divisions;
– administration and the
– executors (those completing the tasks, job, project)
When this happens businesses are exposed to the risk of losing revenue and incurring additional costs without recouping them from the customer.
Another risk is the increase of a potential dispute with the customer. After all, they can claim they never agreed to the out of scope variations and it falls into miscommunication.
The common pitfalls for out of scope variations are:
❌a lack of communication between Divisions – Sales, Admin & the Executor.
❌admin may have the scope but not always privy to the “out of scope” conversations. This is usually discussed between the customer and the sales team or the customer and the executor.
❌heavy reliance on employee memory to invoice variations; especially when agreed informally.
❌exclusions / inclusions are not always formally clear with the customer and potentially not charged as and when they should be.
❌the executor is not thoroughly briefed or given clear deadlines.
To reduce invoice issues ensure the systems and processes are in:
✔️strong and in control,
✔️invoices are verified for accuracy and completeness.
✔️create policies and procedures to obtain purchase orders or an amendment to the contract prior to variation works commencing.
✔️Perform independent reviews for monitoring of compliance.
Even those businesses that are profitable should look at the finer details – you may be surprised what goes on with ‘lost sales’.
If you would like an independent review of your invoicing process, reach out and we would love to reduce the risk on sales invoicing.