What are the best invoicing metrics for complex projects with multiple stakeholders and deliverables?

1 Metric 1: Project budget vs. actual cost

One of the most important invoicing metrics for complex projects is the project budget vs. actual cost. This metric compares the estimated cost of the project with the actual cost incurred by you and your team. It helps you monitor the profitability of the project, identify any cost overruns or underestimates, and adjust your invoicing accordingly. To use this metric effectively, you need to track all the expenses related to the project, including labor, materials, travel, subcontractors, and overhead. You also need to communicate regularly with your client and stakeholders about the project scope, deliverables, and milestones, and update them on any changes or issues that may affect the budget.

2 Metric 2: Invoice accuracy rate

Another invoicing metric that can make or break your project is the invoice accuracy rate. This metric measures the percentage of invoices that are correct and error-free, based on the agreed terms and conditions of the project. It helps you avoid disputes, delays, and penalties that can damage your cash flow and reputation. To use this metric effectively, you need to have a clear and consistent invoicing process that follows the best practices of your industry and client. You also need to review and verify your invoices before sending them, and use tools like spreadsheets, software, or templates to automate and simplify your calculations.

3 Metric 3: Days sales outstanding (DSO)

A third invoicing metric that can help you manage your cash flow and project performance is the days sales outstanding (DSO). This metric measures the average number of days it takes for your clients to pay your invoices, from the date they are issued to the date they are received. It helps you assess the efficiency and effectiveness of your collection process, and identify any issues or risks that may affect your liquidity and solvency. To use this metric effectively, you need to set clear and realistic payment terms and expectations with your clients and stakeholders, and follow up with them regularly until you receive the payment. You also need to track and analyze your DSO over time, and compare it with your industry and client averages.

4 Metric 4: Client satisfaction score

A fourth invoicing metric that can help you enhance your project quality and client relationship is the client satisfaction score. This metric measures the level of satisfaction and loyalty that your clients have with your invoicing process and service. It helps you understand how well you meet or exceed their expectations, and how likely they are to refer you to others or work with you again. To use this metric effectively, you need to solicit feedback from your clients and stakeholders, either through surveys, reviews, testimonials, or referrals. You also need to act on the feedback, and use it to improve your invoicing process and service, and address any issues or complaints.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?