Just completed my second audit and I'm not sure how to format the invoice. I found 3 separate errors for a client in Concord with Eversource — a rate class error, a tax exemption, and a demand ratchet issue. Do I send one invoice for 40% of the total recovery or itemize it by finding?
How do you invoice — one lump sum or itemized by finding?
Itemize. Your invoice should list each finding separately with the recovery amount and your fee for that finding. This does three things: it shows the client exactly what they're paying for, it demonstrates the breadth of your work, and it creates a record that matches up with each utility credit or refund when they arrive. A lump sum invoice on a $30,000 recovery feels like a big number. Three line items showing $8,000 + $12,000 + $10,000 in individual findings with corresponding fees tells a story of thorough professional work.
Itemized the invoice with a brief description of each finding, the recovery amount, and the fee calculation. Client paid without any questions. She actually said it was the clearest consultant invoice she'd ever received. Going to use this format for every engagement.