Invoicing in an IT company (digital services company) is not just a question of figures. It’s a strategic art that has a direct impact on company profitability and customer relations. Pay-as-you-go, fixed-price, subscription: each method has its own rules, advantages and pitfalls.
Profitability: invoicing in an IT company, the advantages of time and materials management
Choosing the right IT company billing model maximizes margins while keeping customers happy. Sometimes, it also means making certain decisions to avoid projects that cost more than they bring in. So, let’s dive right in.
For IT companies, the “régie” invoicing method offers a customer relationship based on trust. In fact, invoicing in this way guarantees profitability of missions. No budget drift, no unforeseen events! The customer knows what he’s paying, and the IT company knows what it’s earning.
Let’s talk about régie, the simplest billing model in an IT company: the customer pays for the hours worked, period. No complications, no nasty surprises. For an IT company, this billing model guarantees stable, predictable income.
Transparency is total: every hour worked is invoiced, perfectly aligning effort and income.
In an IT company, the “régie” invoicing method offers a customer relationship based on trust. In fact, invoicing in this way guarantees the profitability of your assignments. No budget drift, no unforeseen events! The customer knows what he’s paying, and the IT company knows what it’s earning.
What’s more, time and materials billing requires rigorous time management and transparent communication. Every hour must be accurately tracked, otherwise disputes will arise and profitability will be jeopardized.
Business profitability: flat-rate invoicing for higher margins
A fixed-price contract is an invoicing model in which an ESN offers a fixed price for a pre-defined scope of work. The main advantage? The customer knows the overall cost of the project from the outset, which guarantees a certain peace of mind. The ESN can thus improve its profitability by adjusting its resources and controlling deadlines.
Properly managed, this ESN invoicing method helps toincrease marginsThis is particularly true when the scope is stable and the tasks well defined. Fixed-price invoicing is a road trip without detours! We know the destination, and everything is under control.
Technical unforeseen events, additional requests or last-minute changes can turn a seemingly profitable project into a real nightmare.
In ESN, fixed-price invoicing is ideal for well-defined, fixed-term projects, where risks are controlled from the outset. A well-structured fixed-price contract in ESN can become a powerful lever of profitability. What’s more, it enables you to reduce billing timeThis optimizes financial management. However, it requires vigilance and rigor to avoid unpleasant surprises.
ESN subscription: stability, but not without compromise
Subscription is similar to a fitness club membership. Every month you pay, but you can never be sure of using it fully or neglecting it. For the ESN, the advantage is clear: regular profitability and a more stable customer relationship.
Gone is the rollercoaster ride of one-off contracts, replaced by the tranquility of a subscription, where everything is planned for the long term. This billing model also fosters a constant, trusting partnership with the customer. This is always pleasant, especially when recurring needs are involved.
Another major advantage of this billing method is that it enables accounting management and revenue predictability. Rather than chasing invoices, ESNs can count on a fixed source of income every month. This makes it easier to manage cash flow, plan investments and ensure optimum profitability.
Automatic invoicing: Furious Squad, the ERP designed for ESNs
In the world of ESNs, agencies and consulting firms, invoicing is often a real headache. Between time and materials, fixed-price and subscription projects, keeping track of hours, budgets and resources requires surgical precision. Furious Squad has been designed to manage structured projects, where clear and precise monitoring of execution is important.
It’s the solution for missions that rely on rigorous methods. This ERP centralizes all key information – reporting, resource management, CRM, invoicing and finance – in a single interface. It thus eliminates the data dispersal and errors that undermine corporate profitability.
Furious Squad has the right solution for every ESN invoicing model. In structured project management, each hour worked is transformed into reliable data, recorded and directly integrated into invoicing. For fixed-price projects, real-time monitoring ensures that budgets are respected, and quickly detects any cost overruns.
Profitability in ESN: a billing challenge
With Furious Squad management software, this balance is within reach. Ultimately, the ideal billing method is the one that ensures the prosperity of the ESN while guaranteeing optimal profitability. Request your free demo today.
