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Profit Precision: Step 3

Raising Invoices, Recovering Revenue & Measuring Profitability

Written by Mariska

Once your rates are configured and your time has been authorised, the final stage of Profit Precision is converting completed work into invoices and profitability insights.

This is where DataGrows begins delivering its greatest value by transforming completed work into recovered revenue.

The objective is simple: bill consistently, recover every legitimate charge, and gain visibility into the profitability of your firm.


From Authorised Time to Invoices

Once time has been marked as Invoice Pending, DataGrows can generate billing automatically.

This includes:

✅ Retainers

✅ Hourly work

✅ Fixed-fee work

✅ Recoverable expenses

✅ Disbursements

The result is a streamlined billing workflow that dramatically reduces month-end administration.


Understanding Billing Run Types

DataGrows supports two primary billing runs.

Ad Hoc Invoices

Ad Hoc Invoices allow you to invoice work before month-end.

Examples include:

  • Annual Financial Statements billed on completion and sign-off

  • CIPC Annual Return Fees billed in advance of submission

  • Once-off Consulting

  • Clean-up Work

  • Catch-up Accounting

Rather than waiting until month-end, work can be billed immediately upon completion.

This improves:

  • Cash flow

  • Client communication

  • Recovery rates


Month-End & Retainer Invoices

The Month-End Billing process generates:

  • Retainer invoices

  • Recoverable expenses

  • Recurring charges

  • Invoice Pending work

This is the main billing run performed each month.


Generate Invoices

Navigate to Approvals & Billing → Billing → Process

Choose the Process you want to run (Adhoc / Month-End) and open the record.

Change the action dropdown (inside the record, not on top) to Process

Click Save & Close

DataGrows will immediately start creating your invoices according to your Firm Settings (invoice date, due date, VAT) and the Billing Report for your clients.

The Last Run Date will populate so you know it has processed.

The invoices will be available in Approvals & Billing → Billing → Invoice

with the Status “Processed”


Reviewing Generated Invoices

Before posting invoices, DataGrows creates draft invoices for review.

This provides an opportunity to:

  • Check values

  • Verify descriptions

  • Make adjustments

  • Confirm invoice totals

Draft invoices reduce the risk of errors reaching clients.

Navigate to Approvals & Billing → Billing → Invoice

Filter on your current billing date on the Invoice Date Column or Status “Processed”

Note: The invoice numbers in this table are only for internal use. When you post to Sage or Xero, DataGrows automatically gets the next available invoice number on your accounting sequence. This means that you don’t need to keep track of your next invoice number, and you can still raise invoices manually if you need to and not throw off the integration in DataGrows.

Pro Tip: Keep all your invoices in DataGrows.

If you do need to raise a manual invoice for a quick fee or pre-billed service, click Add Record in the invoice table, complete all the details,

Then click Save & View to see the invoice lines table. You can add the detailed lines and values. From here you can post to Sage or Xero. This keeps the revenue and profit for all your clients as accurate as possible.


Using the Invoice Lines Table

One of the most useful billing tools is the Invoice Lines table.

Many firms use this table for bulk adjustments.

Examples include:

  • Tax season fee adjustments

  • Additional complexity charges

  • Project-based pricing updates

  • Special client arrangements

Open an invoice to see the invoice lines that show the breakdown of services billed. You can edit any Description, Qty or Price if you need to.

Click Save & Close when you are done.


Bulk Adjusting Invoice Values

To make adjustments:

  1. Open any Invoice,

  2. Click on the Invoice Lines Tab at the top next to Details

  3. Jump to the Invoice Line Table by using the Diagonal Arrow next to the table heading.

  4. Clear the active filter.

  5. Then you can filter by:

    • Client

    • Task

    • Invoice Date

    • Service Type

You can then update multiple invoice values efficiently.

This is especially useful during busy periods where many similar invoices need adjustment.


Recovering More Revenue

One of the biggest benefits of Profit Precision is visibility.

When firms track:

  • Time

  • Tasks

  • Notes

  • Expenses

they often discover work that was previously never billed.

Common examples include:

  • Client correspondence

  • Compliance follow-ups

  • Additional advisory work

  • Special requests

The result is stronger revenue recovery without increasing workload.


Posting to Sage or Xero

Once invoices have been reviewed & edited:

  1. Select the invoices by checking the checkboxes on the left.

  2. Click the appropriate posting action

Use Post Invoice to Sage, if your firm is integrated with Sage.

Use Post Invoice to Xero, if your firm is integrated with Xero.

Pro tip: Filter per firm if you have more than one, and use both accounting platforms. But don’t panic. DataGrows can’t raise an invoice to a system your firm or client isn’t linked to. So, DataGrows will just throw an error if you click the wrong button.

  1. DataGrows transfers the invoice to Sage or Xero.

  2. Once successful, DataGrows will populate the next available invoice number in your accounting system in the column “Accounting System Invoice Number” to create an audit trail of what posted.

The process is largely automated and supports bulk processing.


Understanding Posting Errors

Occasionally an invoice may fail to post.

Common reasons include:

  • Missing item codes

  • Missing GL accounts

  • Client not synced to Sage

  • Client not synced to Xero


Accounting System Issues Column

Failed postings appear in the:

Accounting System Issues Column

This column helps identify:

  • Which invoice failed

  • Why it failed

  • What needs correcting

Follow the note given, and Save & Close the Invoice. After correcting the issue, the invoice can simply be posted again.


Sage & Xero Audit Reports

DataGrows includes audit reports that help identify issues before posting.

These reports highlight:

  • Missing integrations

  • Coding issues

  • Product mapping errors

  • Unlinked clients

Using these reports reduces month-end surprises.

Click on the Reports tab in the Invoice table and use – Sage Invoice Audit Report / Xero Invoice Audit Report

The Goal: An empty report means there are no issues that could prevent an invoice from posting to your accounting system

Understanding the report:

Client Issues – follow the guide in the Issue column, navigate to the Clients Table and integrate the client.

Pro Tip: Sometimes a client is created manually in Sage or Xero (we discourage this for this reason) and is not integrated with DataGrows. Trying to post them in the Clients table will fail because they already exist.

To fix this, Navigate to Setup & Integrations → Setup → Firm Settings

Check the checkboxes of your firms (Select all if using the same Accounting System) and use the Action “Import Clients from Xero” / “Import Clients from Sage” to resync any new clients.

Then, Navigate to Setup & Integrations → Integration → Accounting System Clients

Filter for the newly imported client and MATCH them to their DataGrows client by opening the record and choosing their name from the DataGrows client dropdown. Click Save & Close. This action syncs the accounting system client to the DataGrows client and will remove them automatically from the Invoice Audit report as an issue.

Best Practice: Exclusively load new clients to DataGrows and post to Sage / Xero from the Clients table using the action “Post Client to Xero” or “Post Client to Sage”. This creates the new customer with all their contact and invoice information AND integrates DataGrows and your accounting system, avoiding delays that occur when trying to raise your invoices. Review the clients table “Integrated” column regularly (save a filter) to maintain your clients and make the invoice posting process as quick as possible.

Invoice Issues – follow the guide in the Issue column, navigate to the Invoice Table and correct the line that has an issue.

These generally refer to item code or GL Account issues, like missing from invoice lines

Or a firm-code mismatch (if you have more than one firm in DataGrows)

Use the invoice number shown on the report to filter and correct the missing codes.

Pro Tip: Rearrange or pin the Invoice Lines table to have the “Invoice Code” or “Accounting System Account” column shown first when you open an invoice to immediately spot gaps.

If this is your first time billing or been a while since you maintained your Rates setup, you could have a few invoice issues – remember to jump to Invoice Lines to make bulk edits.


Understanding Invoice Numbers

DataGrows maintains its own internal invoice reference numbers.

These are used to:

  • Link time records

  • Link tasks

  • Create an audit trail

When invoices are posted:

  • Sage generates its own invoice number and DataGrows captures it in the Accounting System Invoice Number Column.

  • Xero generates its own invoice number and DataGrows captures it in the Accounting System Invoice Number Column.

Both references remain available for traceability.


Measuring Profitability

The real power of Profit Precision lies beyond invoicing.

Once accurate data exists, DataGrows can help answer important questions.


Which Clients Are Profitable?

Identify:

  • High-value clients

  • Underperforming clients

  • Clients requiring retainer reviews


Which Services Are Profitable?

Understand:

  • Recovery levels

  • Service margins

  • Resource consumption


Which Staff Members Are Most Profitable?

Review:

  • Productivity

  • Utilisation

  • Recovery rates

This helps make informed staffing decisions.

Use key reports to determine profitability of retainers, efficiency of staff and their training/resources and profitability of Adhoc services:

· Profitability-Retainers

· Accountant Hours

· Revenue & Profit (From Invoice Table)


Preventing Revenue Leakage

Most firms don't lose money because they don't work hard.

They lose money because:

  • Work isn't tracked

  • Time isn't reviewed

  • Rates aren't maintained

  • Invoices aren't raised promptly

Profit Precision addresses these problems by creating visibility across the entire billing cycle.


The Firm Health Guardianship System

When fully implemented, Profit Precision becomes more than a billing tool.

It becomes a system for protecting:

  • Revenue

  • Margins

  • Productivity

  • Pricing discipline

  • Long-term sustainability

Visibility creates accountability.

Accountability creates control.

Control protects profitability.


Key Takeaways

✅ Ad Hoc Invoices support immediate billing of once-off work.

✅ Month-End Billing generates retainers, expenses, and recurring invoices.

✅ Invoice Lines enable efficient bulk adjustments.

✅ Posting to Sage and Xero is automated.

✅ Accounting System Issues help identify posting problems quickly.

✅ Audit Reports improve billing accuracy.

✅ Profitability insights help identify valuable clients and services.

✅ Revenue leakage decreases when billing becomes disciplined and data-driven.

✅ Profit Precision provides ongoing visibility into your firm's financial health.

Remember: The goal isn't simply to raise invoices faster. The goal is to understand the true value of your firm's work and ensure that value is consistently recovered. When implemented properly, Profit Precision turns billing into a strategic profitability tool rather than an administrative burden.

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