The invoice creation process for consulting firms using spreadsheets focuses heavily on making sure the data is correct. One error can trigger a review, with a serious delay in payment. Once that happens, client trust begins to erode.

But even if your invoices are all accurate, you may still be just presenting the client with a bill, one that they may question: “How did we get to that number?” This is especially prevalent with “flat fee” line items, where no detail is provided other than "consulting services”. This tells the client nothing about the work that was done or the effort that went behind it. Your client may perceive you as an expense, as opposed to a partner who creates value.

Why Clients Want To See Detailed Invoices

There is a psychological phenomenon called the “Labor Illusion”, that suggests that people value a service more when they can see the effort behind it. We experience this when an operation on a website shows us a progress bar; we can “see” the operation in progress, so we patiently wait and trust the results more than if the operation happened instantaneously.

This logic applies to invoicing as well: If a client sees line items broken down with a clear description of the work, effort and expertise applied to their project, they will trust your expertise and view the work done as valuable. If you send generic line items with little to no detail, then they will just see the price with no context.

Client Trust Is A Retention Strategy

Every consulting firm owner knows that retaining an existing client is far cheaper than acquiring a new one. And while doing good work on your client’s behalf is important, retention is more heavily influenced by their trust in your firm.

Sending detailed invoices shifts the client conversion from “What are we paying for?” to “Look at how much value we got”. This is a much stronger basis for a relationship, and when a client trusts your invoices, they trust your firm and are much more likely to renew.

Create Detailed Invoices Using Automation

If you are using spreadsheets to create your invoices every month, adding this level of detail will be impossible without adding days or weeks of work. The level of double data entry, chasing down every milestone and extra formatting time would add too much delay to the billing process, so the line item detail (and client trust) is sacrificed so the invoice can go out the door. Your firm is already generating the data and detail necessary to make your invoices a trustworthy retention tool. It is just siloed into many different platforms, spreadsheets and documents. Using

Professional Services Automation (PSA) software like Projectworks, your team will track time, expenses, and invoice clients in the same platform, and all of the line item details your clients want to see will flow into your invoices automatically.

Send A Value Statement Instead Of A Bill

Your invoices are just as important a client touchpoint as any of your sales materials. And automation is the only scalable way to show your clients the value you are providing every month. You can start creating better invoices today with a free trial of Projectworks. Or, let us demo Projectworks for you, and start creating invoices that show your firm’s value.

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