Effortlessly Manage Your Final Bill Format for Administration

Final bill format for Administration

good day this is iming time and today we're going to cover progress billing progress billing is done for a variety of reasons typically to get an invoice out for services that have not yet been performed an example of this would be an audit where during the the Inception of the audit you send an invoice out and then during the audit you send additional invoices out staying ahead of the client and then final billing the client at the end of the engagement the other way you might do progress billing would be if uh you're on a monthly retainer engagement and at the end of the year you have the possibility of billing additional Services you might want to change the fee and you want to see at the end of the year the total time for the whole year against the total bills for the year and then close them out on the last invoice now not every practitioner does monthly bills this way many of them will clear the time each month but others know that there's Peaks and valleys and they like to smooth it out and rather than recognize the realization each month when some months are more work for the same fee and some other months are less work for the same fee they hold off and wait till the end of the year so in those situations a progress bill is used at the end of the year a final bill clears the timeout so we're going to use the audit example I'm going to open the dashboard as of April we're going to use Alabama montros as our client now I've I've gone ahead and entered some time for them already it's $4,530 of time typically the first thing we would do though is we would send out a progress invoice so let me clear the dashboard of any pending invoices you can tell that from this check box here these are the temporary invoices assuming that we were working on a session and I'm going to start from scratch I'm going to choose progress Bill $2,000 and print Bill don't want to change the date yet and I'm going to say progress bill on audit for 20 16 click preview and print I'm showing the previous balance and the prog and the payment that was made and then this progress invoice I don't have to show the previous balance that's an option you can use letter head or a bitmap graphic up here you can move these fields around change the font you don't have to show the remittance advice there's the invoice I'm going to post it when you post an invoice it clears the time if there is any in the case of a progress bill it sets up an unearned allowance kind of a accumulated appreciation account against your accounts receivable so that you don't recognize income for services that have not yet been performed in this case I don't want to email it but if I did I could choose PDF and it allows me to email this invoice through Outlook I'm going to say no and I'm going to post the invoice it creates the transaction and the allowance let's take a peek at that if I highlight Alabama montros it says doubleclick to view client invoice and payments so here is that invoice for $2,000 this would be the terminology that would appear on a statement if you sent one out I can also look at the client screen over here by double clicking on the client ID the client screen will show you I have a bill balance outstanding and I have an allowance of $2,000 now I have recorded the time for the entire audit so it shows the unbuild Whip and actually this presentation is the kind of presentation you would see at the end of the engagement where the whip is already in there the work in progress we've build 2,000 and we have a final bill we have to get out for the remaining whip let's go ahead and take a look at what I did with this whip I'll click print selected Whip and let's choose the order that we'd like to see this in code and here is subtotal whip report of all the time that was entered for this job toing $4,530 and here's our allowance and in order to break even with our standard rates we need to Bill an additional $2,530 on the final bill now there's two ways of doing the final bill you can send out another progress bill for $2,530 or you can do a final bill the difference is that the final bill will close out the time it'll clear the whip out it'll also clear out the allowances often times if you're not sure that it's the final bill or you're kind of doing it on the Fly and want to give yourself a little wiggle room you'll send out another progress Bill and then you'll final bill I'm going to show you both situations in the final bill situation first we have to release the time so if I'm going to release it all I can double click on the 2530 or I can go into release edit slips if I'm picking and choosing and over here I can pick the ones I want to release or I can just click release like that then I choose final bill it tells you that you can write up the final bill if you want to in this case let's go ahead and do that first I have to actually double click on the final bill and verify that I am allocating the progress Bill the previous progress billing to this project by entering an amount here after I've done that I can write it up let's say to $3,000 click print bill and I will update the posting date now and I'll say final bill on audit okay there it is and it shows that there's been no payment since that last $2,000 invoice click post and now I have final build it you'll notice there's no time on the dashboard anymore nor is there any allowance because if there was an allowance you'd see uh a net number let's go ahead and look at the transaction in a different way before I double click from the dashboard I can also go to billing edit view transactions and type in the client name there's our final bill May 30th if I click billing history it shows me all the time and it also shows me the total of the writeup detail information about the bills that went out on this project so that's a very nice way of doing it if you know that your final bill is your final bill but let's assume the other case so I'm going to undo the final invoice and click Form Tools delete delete record and in this case it brings back all the time and turns the final bill into a progress Bill we're in this situation now where instead of final billing we had done a progress Bill if we go back to the dashboard you're going to see that we have a negative - 470 in whip because we final build 5 thou we sent $55,000 in progress bills out against $4,530 in time now the decision here is is that the final bill or not if it is the final bill but you progress build it instead of final build it you still have to clear out the work in progress if you take a look at the whip you will see that we have $5,000 of whip reserves against $4,530 of unbilled time so we can't let that hang out there that will create a very sloppy set of books I see that too often where time is accumulated and it's never cleared out people let an allowance sit in there so we've got to clean it up since we didn't final build it so the way to do that is by clicking release that it slips what we need to do now is tag to clear our right off so I'm going to on the left side tag instead of releasing for billing I'm going to tag for clearing so I tag then I click WR off it shows me my two progress bills and it assumes that the last one is the final bill I don't have to use that one I'm going to complete the write off and it'll use the weighted average allocation for the write up if I uncheck this box it will allow me to individually allocate the write up and right down but in this case we're going to use the weighted average to keep it simple and now I've done the same thing that I did a moment ago with a final build it took an extra step by progress build I progress build and then I cleared the time against the progress bill in a separate step the net result if we go into the accounts receivable transaction Ledger and look at the billing history you can see that it converted that progress Bill to a final bill and my billing history is the same now there's one other way that we can do final bills and progress bills a more powerful presentation if you will I'm going to undo the final bill and I'll undo the progress Bill I'm going to put ourselves in a situation where now we're ready to do the final bill and we're going to use a different type of format we're going to use a super Bill the super Bill lets you do some unique things I'm going to doubleclick here I've already set this up but I'm going to final bill and show the client the final bill on audit total engagement engagement dollars you may not want to express it that way down in the bottom you can see that using 5,000 against 4530 I have my weighted average right up down here so I'm billing that showing the client the total job and then on this second row I'm applying a progress Bill I'm saying these are my previous progress bills does want you to drill down into that and make sure and allocate the progress bill by entering an amount here return to Super bill at this point I can click preview and now I show final billing less progress billing many customers and clients of ours like this presentation because it does give the client the benefit at the end of the engagement of seeing the total engagement dollars less the previous build balance in this situation client hasn't paid anything but typically you would see that previous progress bills having been paid so if I click post and I jump back into my transaction Ledger instead of seeing final bill I see super bill here but if I go into my billing history I get the same result 4530 a right up of 470 and these two invoices which are the summary of all the invoicing on the project so that's an example of the many different ways that you can progress bill you can use both the progress bill or the super bill when you do monthly engagements monthly retainer bills you can use the super bill for that and not clear the time or you can use the recurring billing options if you do use that it takes you over to this screen and on this screen you would simply say don't clear the time and make it a progress bill so you can on your recurring monthly jobs you can not clear the time and you can do that either using super bills an example on a super bill would be your Auto biller maybe you pick monthly engagements and as we mentioned earlier maybe on those monthly engagements you don't clear the time you send a fixed fee amount out well the elements of the super Bill are basically going to be monthly accounting services with a don't clear option let me let me clean this example up because this this is different here so by double clicking this is an example where we are clearing the time if I wasn't going to clear the time until the end of the year I would just ENT $200 here don't clear slips and I would say monthly work so that's an example of how progress bills and final bills are utilized if I was using the monthly example I I would probably Bill 12 of them and then on the 13th invoice if I have a final invoice for the year that would be my final bill and I'd clear out the time I hope that's helpful and thank you for watching this video