Work done, never invoiced
A client submits samples for a standard suite. Two days later they email to add another test to three samples. The analyst adds it in the LIMS. One sample needs extra preparation. The client later asks for the report to be expedited. At month end, finance runs the billing export, which lists what was registered. The add-on tests, the preparation and the priority surcharge are not on it.
Nobody notices, because the invoice looks normal. The lab has simply done more work than it billed.
Why chargeable work slips through
- Billing reads the original registration rather than the final work.
- Add-on tests and changes arrive by email and are entered in the LIMS without a billing flag.
- Surcharges, preparation fees and disposal charges are recorded in notes or not at all.
- Client price lists and contract terms sit in a separate spreadsheet.
- Invoices are built by hand from exports, so rules are applied inconsistently.
What it costs
Revenue for work already done is lost, and it is hard to see how much because nobody compares the two. Clients may be billed inconsistently, which causes queries. Finance spends days at month end assembling invoices, and the invoices go out late, which delays payment.
| Chargeable item | Often missed because | With event-based billing |
|---|---|---|
| Add-on test | Added after registration | Read from the LIMS as a test event |
| Priority surcharge | Agreed by phone | Recorded as a flag on the sample |
| Extra preparation | Noted in comments | Logged as a chargeable step |
| Rerun at client request | Looks like an internal rerun | Marked with a reason code |
| Storage or disposal | Separate process | Charged on the recorded event |
There is a knock-on effect on pricing decisions. If add-on tests and extra preparation are not billed, management reports underestimate what some clients actually cost to serve, and contract prices are set on incomplete information.
How we build it
- We identify every chargeable event your lab records or should record: tests, surcharges, preparation, reruns at client request, storage, disposal and report amendments your terms charge for.
- Where events are not currently recorded in a structured way, we add simple flags or reason codes to the LIMS workflow, or a small companion screen.
- Each client's price list and terms are stored once, including contract prices and quoted prices.
- At your billing point, per job or monthly, billing lines are built from the events and priced by those rules.
- Finance reviews a draft with anything unusual highlighted, such as a large add-on or a rerun without a reason code.
- Approved invoices are created in Xero, QuickBooks or Sage through their APIs, with sample references on each line.
- A reconciliation report compares work done with work billed, so gaps can be investigated.
Internal reruns for quality reasons are never charged unless your terms say otherwise. The reason codes make the difference clear.
What finance and the lab get
Invoices that match the work. Month end takes a review rather than days of assembly. Clients see sample references on each line, so queries are easier to answer. Managers can see revenue per client and per test as it happens.
Clients benefit too. An invoice that lists each sample, test and surcharge with the client's own references is much easier for their accounts team to approve, which tends to mean fewer queries and quicker payment. Disputes become a matter of pointing at a line rather than reconstructing a job.
Is your lab under-billing?
- Invoices are built from registrations or exports.
- Add-on tests are requested by email.
- Surcharges are agreed informally.
- Client price lists sit in a spreadsheet.
- Nobody compares work done with work billed.