Billing (aka invoicing) strikes most professionals as boring and tedious. As far as the average professional is concerned there is only one way to think about billing – a necessary evil. It takes time, doesn’t really help build relationships and can only generate problems, which take even more time to resolve.
I must admit – if given a choice I would also rather spend my time talking to clients about their challenges and how I can help them meet those. However – no invoicing – no income and no funds to invest in the business, so we had better get this right.
Here is a somewhat different perspective on this critical and often under-appreciated topic. A pinch of salt, or perhaps a glass of good wine, may well help improve appreciation of this blog. Enjoy
| Approach | What is means | Other considerations |
Marquis de Sade |
“Bill till they scream” | No longer acceptable. Used to be widely practiced. Popular with management |
Chaos |
Incomplete, incoherent, inconcevable | If it’s that chaotic – usually missing a good part of what should be included. Unprofessional and not sustainable |
Grenade |
Lob in a bill higher than expected by the client and then run for cover | Happens surprisingly often. Tends to blow up client relationships. |
Stealth |
Lots of small bills, narrative not transparent | Not sustainable, client eventually get wise and then angry |
Input |
Charge on basis of cost incurred | Often practiced. Does not align interests between service provider and client. Usually limited upside and plenty of downside – as clients often query the input |
Power(aka Elephant in China shop) |
Don’t worry about the consequences – just invoice without regards to timing, content or impact on in-house counterparts. | Happens more than one would think. Endangered species but surprisingly resilient in some micro-habitats |
Multi-matter |
Take a risk sharing approach to a series of matters with a client | Actually a very creative approach to risk sharing, often victim to internal accounting issues |
Accidental |
Sometimes a higher amount is invoiced than intended – and client pays (often without comment) | A miracle! If this happens you need to figure out why you have been under-charging for so long! |
Value |
The holy grail | Actually really difficult to do well. Client often don’t recognise the true value of services rendered, and even when they do – they won’t tell you |
Smart billing |
The secret of sustainable success | Read the book or contact me for insights on how to implement this. No invoice should leave the office without it. |
Please let me know your favorites or if you have encountered other approaches that should be included in the list
