It’s hard to resist the temptation to bang out a bunch of invoicing at month end.  It feels satisfying to run through the open job list close them off one at a time, as fast as possible, because hey, the weekend is here!  Does it matter if your invoice isn’t itemized to perfection?  If you know roughly what was used on the job or the time that was spent, or even what the “market would bear”, is it ok to just make a price and get the invoice out? 

No it’s not.

Taking this approach sets a chain reaction into motion, leading to extra work, employee and customer distrust, and eventually significant financial losses.

If a customer asks for a breakdown for any reason and you can’t provide it, you lose credibility all around.  In response, you might start fabricating parts and labor costs to justify your invoiced amount.  Now, you're asking your staff to partake in this deceit.  I’ve been learning chess lately, and this position reminds me of being in a fork – a position when you will lose a piece no matter what, and it was avoidable! 

Having a system that allows you to be accurate to the last nut and bolt without paying a big administrative cost is the way out of this.  Accurate invoicing also allows you to trust the markets feedback.  You can know if your labor or markups are not aligned with the market earlier.  Even without a good system in place, taking the time to be accurate and honest with your invoicing builds trust and ultimately a better business.