Unless you can say with 100% certainty that each month every single possible bit of work or product that could have been invoiced has been invoiced AND you can produce a report that will prove it, you are very likely leaving money on the table.
It amazes me how many companies rely on a single person’s memory to know if all the work performed by the company is captured on an invoice.
Do you run an exception report every month (or every billing period) to highlight any potential invoices that did not go out to clients? For many companies, it is quite simple to create a report that shows potential invoices, sometimes with the total amount to be invoiced. Once this report is reviewed and all invoices to be created at this time are selected and created, the report is run again to see if any potential invoices are left out. This report should go back as far in time as possible to make sure that even if an invoice is missed in one period, it will be picked up in a subsequent billing cycle.
Another tactic is to use estimates, to create “pre” invoices that do not impact the income statement and then run a report to make sure that all estimates have been converted to invoices. This is especially useful for companies that do progress billings.
Sometimes many different types of checks and balances are needed to ensure that all the ways that a company invoices it’s client are being done. But these checks and balances are essential for your company to truly thrive.
The bottom line: A company that does not convert its product or services into cash in an efficient manner cannot thrive.