Invoice reconciliation is the process of verifying that all costs on an invoice align with project records and agreements. This ensures accurate billing before submission to the client, reducing the risk of disputes over payments.

How Invoice Reconciliation Ensures Billing Accuracy

Invoice reconciliation ensures that the contractor is charging the client correctly by comparing the invoice details with project records such as purchase orders, contracts, and timesheets. This process helps avoid overcharging or undercharging and ensures that any discrepancies are resolved before submitting the invoice.

Best Practices for Invoice Reconciliation

Contractors should establish a clear process for comparing invoices against project records and address discrepancies immediately. Regular reconciliation of invoices helps maintain transparency and ensures accurate billing, improving client relationships. Related Terms: Purchase Order (PO)

FAQs

Why is invoice reconciliation important in construction?

A: It ensures that the costs on the invoice match the project records, reducing the risk of disputes and ensuring accurate billing.

How is invoice reconciliation performed?

A: By comparing the invoice details with project documents, such as purchase orders and timesheets, to ensure consistency and accuracy.

Invoice Reconciliation Definition

How Invoice Reconciliation Ensures Billing Accuracy

Best Practices for Invoice Reconciliation

FAQs

Why is invoice reconciliation important in construction?

How is invoice reconciliation performed?

Just upload your starting project budget, and follow the financial progress in real-time