Client and practice admin

Billing administration and credit control for accounting practices

We run your month-end billing cycle: WIP reviewed, invoices drafted for approval, issued on time, chased at the intervals you set and reconciled in your own system. Fees, write-offs and difficult conversations stay with the partners.

The monthly billing cycle

Seven stages, one approval point you control

A billing month that runs the same way every time keeps WIP from building up between quarters. This is the cycle we set up with a practice, adjusted to its fee arrangements and systems.

Example cycle. The timing, reminder intervals and approval route are agreed with each practice and written into the set-up notes.
StageExample timingWe handleYour practice
1. WIP review First working days of the month Pull a WIP report by client and job, flag completed jobs not yet billed and time recorded against closed jobs. Confirms which jobs are ready to bill.
2. Invoice preparation Straight after the review Draft invoices from time records, fixed fees or the engagement letter schedule, with narratives in your house style. Supplies any one-off fee notes.
3. Approval Agreed turnaround for reviewers Send drafts to the responsible partner or manager as one batch, with WIP against proposed fee shown for each. Approves fees and decides any write-off or write-up.
4. Issue Once approved Issue invoices from your system with payment terms and details, and log the send date. No action needed.
5. Reminders At the intervals you set Send reminders from your approved templates before and after the due date, and record client responses. Sets the intervals and wording.
6. Escalation When the agreed stage is reached Pass the account to the partner with the invoice history, reminders sent and anything the client has said. Calls the client, agrees a plan, or decides on further action.
7. Reconciliation and reporting Month end Match receipts to invoices in QuickBooks, Bright Manager or IRIS, clear unallocated cash, report aged WIP and aged debt. Reviews the report and sets next month's priorities.
Lock-up

The practice metric billing admin moves

Lock-up is the time between doing the work and having the cash. Most practices measure it as WIP days plus debtor days.

Unbilled work inflates WIP days. Invoices left unchased inflate debtor days. A steady cycle works on both. Practices calculate lock-up in different ways, so we report the figures using your formula, and your partners set the targets. We do not quote benchmarks on your behalf.

Monthly report contents. Day counts follow the calculation method your practice already uses.
FigureWhat it shows
Unbilled WIP by clientWork done and recorded but not yet invoiced
WIP daysHow long work sits before it is billed
Aged debt by bandInvoices outstanding by age, for example 0 to 30, 31 to 60, 61 to 90 and over 90 days
Debtor daysHow long invoices take to be paid
Write-offs approvedValue written off in the month, as decided by the partners
Lock-up daysWIP days plus debtor days
Your decisions

What the partners always decide

Billing touches the client relationship, so the judgement calls never leave your practice.

Fees and write-offs

Every invoice is approved before issue. Write-offs, write-ups and credit notes are raised only on a partner's instruction.

Disputes and plans

When a client questions a fee or asks to pay in instalments, we pass it to you with the history attached and record what you agree.

Further action

Stopping work, charging statutory interest or referring a debt elsewhere is your decision, taken with your engagement terms in front of you.

Credit control

Chasing fees without straining the relationship

A predictable sequence feels routine to the client. The same reminders, sent on the same days, from your accounts address, make a fee reminder an ordinary part of the process.

For business clients, GOV.UK explains that if no payment date is agreed, payment is late 30 days after the invoice or the service, whichever is later, and that statutory interest is 8% plus the Bank of England base rate unless the contract says otherwise. Whether to rely on that is a decision for you and your terms of business.

Source: GOV.UK "Late commercial payments: charging interest and debt recovery".

  1. Before the due date

    A short courtesy note for larger invoices, confirming the amount and how to pay.

  2. On or just after the due date

    A friendly reminder with the invoice attached and payment details repeated.

  3. Later reminders

    Firmer wording at the intervals you choose, referencing your terms of business.

  4. Handed to the partner

    The account, the full reminder history and any client replies, ready for a call.

Questions

Billing and credit control questions

What is lock-up in an accounting practice?

Lock-up is the number of days between doing client work and receiving payment for it. It is usually measured as WIP days, the time work sits unbilled, plus debtor days, the time invoices sit unpaid. Practices calculate the components in different ways, so compare your own figures month to month using one consistent method.

How can an accounting practice reduce lock-up?

Bill completed work promptly and chase invoices on a fixed schedule. Monthly WIP reviews catch finished jobs that were never invoiced, and consistent reminders shorten the wait for payment. Agreeing fees in the engagement letter and billing on completion or by instalments also helps. We run the cycle; the partners set targets.

Can we outsource credit control without upsetting clients?

Yes, if the reminders come from your accounts address, use wording you have approved and stop at the point where a partner takes over. Clients see a consistent process from your firm. Anything sensitive, such as a complaint or a request for more time, goes straight to you.

Can accountants charge interest on late-paid fees?

For business clients, GOV.UK guidance on late commercial payments sets statutory interest at 8% plus the Bank of England base rate, unless a contract sets another rate. Your terms of business and the client relationship should guide whether you use it. That decision stays with your practice.

Who approves fees and write-offs when billing is outsourced?

Your practice. We prepare draft invoices with the recorded WIP shown against the proposed fee, and the responsible partner or manager approves, adjusts or writes off. Nothing is issued or credited without that approval, and the approval is logged against the invoice so your records show who agreed each fee.

Which billing systems do you work in?

We work inside the systems your practice already uses, including Bright Manager, IRIS and QuickBooks, through logins you issue. Invoices, reminders and receipts stay in your records, so your reports and client history remain complete. If you use a separate system for time recording, we work from its WIP reports.

Related services

Client inquiry support

Fee and invoice questions answered from your billing records.

Bank reconciliations and payroll prep

Ledgers kept current so receipts match quickly.

Client onboarding

Fee schedules captured at engagement, ready for the first invoice.

Further reading: client inquiry support and billing admin, the hidden workload on senior staff, and what outsourced back-office support costs.

Next step

Get this month's invoices out on time

Tell us your fee arrangements and terms, and we will map your billing cycle on the call.