Tips for Invoice Management
Document Everything from the Start
- Track each applicant from start to finish.
- Have a system in place for documenting each individual homeowner throughout the entire process. When HUD does audits on Community Development Block Grant Disaster Recovery (CDBG-DR) applicants, they can ask about any point during the process; documenting by applicant is critical for having the correct data to meet HUD requirements.
- Set up a system and schedule for internal monthly reviews from the outset.
- Conduct an internal invoice review monthly to catch any compliance errors early.
- Be prepared for the final audit from the start.
- Integrate the invoice review process into the contract when its being developed.
- Think about the questions that will be asked during the audit process about the data that you’ll be collecting.
- Have a system from the very start for documenting everything closely because it needs to add up at the time of the final audit.
Implement Checklists and Templates
- Set up a checklist for each billing point from the outset.
- Every contract has different tasks and various deliverables. For each contract, set up a checklist for each billable point that contains the guidelines and requirements specific to the contract.
- Be prepared with a checklist for different billing types.
- At a minimum, have a checklist prepared for billing by unit price, percentage complete and time/materials. There are many different types of billing you may also need to develop a checklist for, but these are almost guaranteed to be used in any contract.
- Be aware of federal and state invoice compliance requirements.
- Use checklists for invoice compliance requirements from all stakeholder agencies. If you’re not in compliance you won’t get paid – no matter how good your invoice review is.
Billing Points
- Take into consideration certain points in the program where homeowners might drop out and place billing points before those steps.
- Have a plan for what to do if billing points aren’t reached, and how to deal with partial payments if, for example, a homeowner drops out of the program.