Construction Accounting: Unberbilling

Underbilling is the practice of neglecting to bill for the labor and materials that have been provided to the customer.

Underbilling is the practice of neglecting to bill for the labor and materials that have been provided to the customer. Underbillings should be rare in your business. A circumstance where you find yourself underbilling is when there is a dispute between the amount owed and the work performed, or if you’ve simply forgotten to send out an invoice for work performed. It is best practice to bill as soon as the work has been completed, stick to the agreed terms and any change orders.

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Author: Matt Monihan

Matt Monihan is a contributor to ConstructionMetrics.com as well as CEO of ResponseVault.com, a field management tool for the construction industry.