Project tracking and invoicing: optimise the management of your client projects
Introduction
You finish a project, open your invoicing software and realise that you no longer know exactly how many hours you spent on this or that task. You forgot to note down certain expenses. You hesitate over the amount to invoice. Does this situation sound familiar?
The problem doesn't come from a lack of organisation, but from a disconnect between project tracking and invoicing. Many freelancers and agencies manage their projects on one side (timesheets, deliverables, communications) and create their invoices on the other, with no link between the two. Result: wasted time, invoicing errors, and sometimes tensions with clients.
Aligning these two processes doesn't require complex tools or sophisticated methods. You simply need to track the right information at the right time and organise a workflow that naturally connects the work done to project invoicing. Whether you invoice by time spent, fixed price or subscription, this coordination improves your project profitability and streamlines your client relationships.
This guide shows you how to structure your project tracking to invoice more quickly, more accurately, and without common invoicing errors.
📌 Summary (TL;DR)
Aligning project tracking and invoicing avoids errors, reduces payment delays and improves profitability. Track time spent, milestones and additional costs during the project, then adapt your workflow according to your invoicing model (time-based, fixed price by milestones, or subscription). Use simple and connected tools, invoice regularly during the project, and analyse your margins to optimise your future projects.
📚 Table of contents
- Why project tracking and invoicing must be aligned
- The key elements to track during a project
- Three project-invoicing workflows according to your model
- How to organise your tools for a smooth workflow
- Mistakes to avoid in project-invoicing tracking
- Best practices to optimise profitability and client relationships
Why project tracking and invoicing must be aligned
Most entrepreneurs manage their projects on one side (Trello, Excel, paper) and their invoicing on the other. Result: hours lost reconstructing what was done, forgotten services, and difficulties justifying the amounts invoiced.
This separation creates concrete problems: you don't know if a project is profitable before it's finished, you forget to invoice certain services, and you waste time searching for the information needed to create your invoices.
A unified vision between project tracking and invoicing improves your cash flow, reduces errors and strengthens client trust. You invoice faster, more accurately, and you keep control over your profitability. To go further on optimising your cash flow, read our article on invoicing strategies to improve cash flow.
The key elements to track during a project
To invoice correctly, you must track certain essential data throughout the project. This information forms the basis of your invoicing and protects you in case of dispute.
Four elements are essential to document:
Time spent: number of hours per task and per phase
Milestones and deliverables: validation points with the client
Additional expenses: costs to be recharged
Scope modifications: additional client requests
Each of these elements directly impacts your final invoice. Neglecting them means losing money or creating tensions with your clients.
Time spent and timesheet
For projects invoiced by time spent, accurate time tracking is your only protection. A well-maintained timesheet allows you to justify your amounts and identify time-consuming tasks.
Three simple rules for an effective timesheet:
Note your hours daily, not at the end of the month
Categorise by task or project phase
Clearly distinguish billable and non-billable time
Dedicated time tracking tools facilitate this discipline. The essential thing is to find a method that you'll apply systematically, even for small 15-minute tasks.
Milestones and deliverables
For fixed-price projects, break down your project into billable phases from the start. This approach improves your cash flow and reduces the risk of non-payment.
A classic breakdown: 30% at start, 40% at mid-point, 30% at final delivery. Adapt these percentages according to the duration and nature of your project.
The important thing is to define clear acceptance criteria for each milestone. The client knows what they must validate, you know when to invoice. This transparency avoids misunderstandings and facilitates payments.
Expenses and additional costs
Rechargeable costs are often forgotten in the final invoice: travel, software licences purchased for the project, subcontracting, specific equipment.
These expenses can represent 10 to 20% of the total project amount. Forgetting them directly reduces your margin.
Document these costs in real time: keep receipts, note amounts and dates. Create a dedicated category in your project tracking. When invoicing, you'll have all the information to hand.
Three project-invoicing workflows according to your model
There's no universal workflow for linking project tracking and invoicing. Your methodology depends on your pricing model.
Three main approaches correspond to the three most common invoicing methods: by time spent, fixed price by milestones, and monthly subscription.
Each model requires a specific workflow to optimise your profitability and cash flow. Here's how to organise your process according to your situation.
Model 1: Time-based invoicing
The workflow for time-based invoicing follows simple logic: daily tracking → regular validation → invoicing.
Recommended process:
Track your hours each day in a timesheet
Send a weekly or monthly summary to the client
Have the time validated before invoicing
Export the data and create your invoice
Total transparency is essential with this model. Regularly share the progress of the time budget with your client to avoid surprises when invoicing. An informed client rarely disputes an invoice.
Model 2: Fixed-price invoicing by milestones
For fixed-price projects, the workflow is structured around contractually defined milestones: milestone reached → client validation → invoice triggered.
Key steps:
Define milestones and amounts from the quote
Formalise acceptance criteria for each milestone
Obtain written validation of the deliverable
Send the invoice immediately after validation
This approach allows you to invoice progressively without waiting for the end of the project. Your cash flow improves and the risk of non-payment decreases. The timing of sending your invoices is crucial: discover when to send an invoice to get paid faster.
Model 3: Subscription or monthly retainer
For recurring projects, the workflow combines automatic invoicing and consumption tracking: automatic monthly invoicing → time or deliverable tracking → adjustment if necessary.
Recommended organisation:
Automate recurring monthly invoicing
Track actual consumption (hours or services)
Identify overruns or under-consumption
Adjust the retainer upon renewal
This model offers excellent cash flow predictability. Tracking remains necessary to detect imbalances and adapt your offer. Invoicing software like BePaid facilitates the management of recurring invoices.
How to organise your tools for a smooth workflow
The goal is not to multiply tools, but to create a simple system that effectively connects project tracking and invoicing.
Two approaches work depending on the size of your business: the minimalist approach for freelancers and micro-businesses, and the integrated approach for agencies and teams.
The choice depends on your volume of activity, the number of collaborators and the complexity of your projects. In all cases, prioritise simplicity and efficiency.
The minimalist approach (freelancers and micro-businesses)
For independent workers and small structures, a lightweight solution is sufficient: a simple tracking tool + dedicated invoicing software.
Recommended configuration:
Notion, Google Sheets or Trello for project tracking
Compliant invoicing software like BePaid
No complex connection between the two
The essential thing is to document what's necessary to create your invoices quickly. You don't need a sophisticated system. If you're still using Excel for your invoices, read why it's time to ditch Excel for dedicated invoicing software.
The integrated approach (agencies and teams)
For structures with several collaborators, deeper integration becomes necessary: project management software with timesheet + export to invoicing.
Points of attention:
Choose a project management tool that allows data export
Define a clear process for the whole team
Train your collaborators in rigorous tracking
Centralise invoice creation
BePaid allows data import to facilitate invoice creation from your project exports. This approach reduces input errors and speeds up your invoicing.
Mistakes to avoid in project-invoicing tracking
Certain errors systematically recur in project-invoicing management. They complicate your work, harm your profitability and create tensions with your clients.
Three main traps threaten your cash flow and your client relationship: waiting too long to invoice, neglecting deliverable validation, and forgetting to track scope modifications.
These errors are easy to avoid with the right practices. For a complete view of invoicing errors, read our article on the 10 most common invoicing errors.
Waiting until the end of the project to invoice
Invoicing only at the end of a long project creates a major cash flow problem. You finance the project from your own funds for weeks or months.
Other risks: you forget services provided at the start of the project, and you increase the risk of non-payment (a single large amount is more difficult to pay than a series of smaller invoices).
Solution: invoice by milestones or regular deposits. Even for a fixed price, break down into billable phases. Your client spreads their payments, you improve your cash flow. The timing of your invoices directly influences your payment terms.
Not validating deliverables with the client
Sending an invoice without prior validation of the deliverable opens the door to disputes. The client can refuse to pay by arguing that the work doesn't meet their expectations.
This situation is uncomfortable and avoidable. Formalised validation protects both parties: the client confirms that the work is compliant, you have proof to invoice.
Validation methods: confirmation email, electronic signature, validation in your project management tool. The important thing is to keep a written record before sending your invoice.
Forgetting to track scope modifications
Scope creep is the number one enemy of profitability. Small additional requests accumulate without being invoiced, and your margin melts away.
Each request outside the initial scope must be documented, costed and communicated to the client. Even "small modifications" have a cost in time and energy.
Recommended process: identify the additional request, estimate the time required, send an amendment quote, obtain agreement before starting. This rigour protects your profitability and professionalises your client relationship.
Best practices to optimise profitability and client relationships
Good project-invoicing tracking isn't limited to avoiding errors. It's also a lever to improve your profitability and strengthen trust with your clients.
Three practices transform your project management into a competitive advantage: proactive transparency, systematic profitability analysis, and automation of repetitive tasks.
These habits require initial effort, but they save you time and money in the long term.
Transparency and proactive communication
Regularly share project progress and consumed budget with your client. This transparency avoids unpleasant surprises and strengthens trust.
An informed client understands the value of your work and pays faster. They know what was done, how long it took, and why the invoiced amount is justified.
Recommended frequency: weekly update for short projects, monthly for long projects. A simple summary email is sufficient. This habit improves client satisfaction and drastically reduces invoice disputes.
Analyse profitability by project
After each project, compare your initial estimate with reality: estimated time versus actual time, planned budget versus actual expenses.
This analysis reveals which types of projects are profitable and which make you lose money. You identify time-consuming tasks, demanding clients, and services that need better framing.
Concrete impact: your future quotes become more accurate, you adjust your rates, you refuse or reframe unprofitable projects. This discipline progressively improves your positioning and your margin.
Automate what can be automated
Certain invoicing tasks can be automated: payment reminders, data exports, creation of recurring invoices.
Automation frees up time for you to focus on project delivery and client relationships. You also reduce errors and oversights.
Useful features: BePaid automates payment reminders and tracking of unpaid invoices. You define your rules once, the system takes care of the rest. To choose the right features, read our guide on how to choose the right invoicing software.
Rigorous project tracking isn't just a question of organisation: it's the key to fair, smooth and friction-free invoicing. By aligning your time tracking, your milestones and your invoices, you gain transparency with your clients and visibility on your real profitability.
Whether you invoice by time spent, fixed price by milestones or subscription, the essential remains the same: track what matters, communicate regularly and never wait until the end of the project to invoice. These simple reflexes transform your client relationship and protect your cash flow.
To streamline this workflow, BePaid allows you to create your invoices in a few clicks, automate your reminders and track your payments in real time. You focus on your projects, we manage the invoicing. Create your free account and test the platform today, with no commitment.
