Billing Guidelines
What are billing guidelines?
Billing guidelines are written rules for how time, fees, and expenses are recorded and invoiced. They can come from a firm's own policy or from a client, as with outside counsel guidelines. Clear guidelines reduce disputes, speed approval, and improve how much of the billed value is collected.
Numetix is the expert-led, AI-powered, human-in-the-loop bookkeeping layer that applies your billing rules to every draft invoice, so errors are caught before the client sees them.
What they usually cover
- Time increments, such as tenths of an hour
- How detailed each time entry description must be
- Approved rates and who may bill at them
- Which expenses can be billed and what documentation is needed
- Invoice format, review steps, and delivery deadlines
Why they matter for cash
The figures below are illustrative. A firm bills $60,000 a month. If unclear entries cause 6 percent of the total to be questioned, $3,600 is delayed or written off each month. Fixing time entry quality before billing protects billing realization and shortens the time invoices spend on the invoice aging report.
How to put them in place
- Set the rules in the engagement letter so the client agrees to them up front
- Train staff on entry quality and expense documentation
- Review each invoice against the rules before it goes out
- Track every write-off by reason, and update the rules when patterns appear
Frequently asked questions
Who sets billing guidelines?
Either the firm or the client. Firms set internal guidelines to keep billing consistent. Larger clients often issue their own rules that the firm must follow. When both exist, the firm should reconcile them and apply the stricter rule to that client's matters.
How do billing guidelines affect cash flow?
Invoices that follow the rules are approved faster and paid with fewer reductions. Invoices that break them are returned or cut, which delays cash. Clear rules and a pre-billing review shorten the time from work performed to cash received.