How CFOs Can Improve Billing Readiness

Unbilled work is not one operational state

An unbilled total may contain work awaiting approval, work blocked by a commercial exception and work already ready to invoice. Finance cannot resolve all three in the same way. Begin by classifying each item according to the condition preventing its next step.

Build an exception view finance can use

Attach the project, billing period, amount, blocker and accountable owner. Show the age of the exception separately from the age of the underlying work. A recently discovered issue affecting old work deserves a different conversation from a normal approval still within its agreed window.

• Submitted work awaiting approval.
• Approved work blocked by a rate, purchase order or contract condition.
• Invoice-ready work awaiting invoice preparation.
• Issued invoices awaiting the next collection step.

Resolve the prerequisite, not just the report

For example, approved time with an exhausted purchase order is not fixed by asking the project manager to approve it again. The next action belongs with the person who can obtain the commercial authorization. A good workflow preserves that distinction and the supporting evidence.

Review ageing with the responsible teams

Review the oldest material exceptions regularly. Confirm which items are newly invoice-ready, which require client input and which need leadership escalation. Moving an item into invoicing should not be reported as cash collected; each milestone belongs to a different part of the financial process.