How to Develop an Effective Change Request Billing Process

How to Develop an Effective Change Request Billing Process

Outcomes keep business alive. No matter how well planned or perfectly delivered your project, if you don’t have an efficient invoicing system, your whole purpose for completing the work can go away.

Introducing your billing system, though, is just the beginning. One of the biggest reasons for invoices going unpaid is miscommunication - or no communication at all. It’s vital that both you and your client understand how the billing process will work from the outset - including how change requests will be managed and billed.

There are several billing methods available including hourly, monthly and per-project. Hourly and monthly billing for a product or service are fairly straightforward, but per-project billing can be complicated when change requests occur so clear communication is vital to prevent any misunderstandings.

For stability and transparency in project management, we suggest you follow one of two methods for processing any requests for changes to the project when billing your client. 

Hourly Charge

You charge for a request based on the number of hours you've put into it in accordance with a predetermined hourly rate. You basically work with the logic of the faucet. When you start working, you start the timer, and the time continues to tick until you take a break or the task is complete.

To calculate your billable hours, you can create a timesheet or simply use a change request management tool that includes a timer. You can communicate with your client, track several ongoing requests and start your timer for the task you are currently working on. 

Using a billing tool creates transparency and, due to automatic invoicing, avoids the hassle of manual calculation and billing

Daily Charge

You charge according to a predetermined daily rate. This might sound similar to hourly billing, but there are some key differences. 

First of all, the daily billing method provides more time to focus on the task in hand as there is less time-tracking and reporting.  

Both parties will be more focused on the result than the process. It provides an easier way to manage changes and calculate billing. Depending on the job and the team, multiple people can be assigned to do the work. 

Using a change request management tool allows solution providers and clients to communicate about the change request, share progress and suggestions, and prevent anyone from falling behind on the project.  

Conclusion

When it comes to controlling your cash flow in terms of change requests, predetermined terms and accurate calculation are essential. Clear communication and regular updates while carrying out the change request have a positive impact on your working relationship and, ultimately, on your paychecks. 

MaestroCR provides all the features you need to improve your billing process, from agreeing  on the billing method to sending a pro forma after closure. 

To experience easier change request management, sign up free.