How do I ensure my time and expense capture workflow with timesheet software is compliant with client billing rules?

To make your time and expense capture workflow compliant with client billing rules, design it so the rules are enforced at the point of entry, not just during invoice review. A good workflow typically includes these controls:

1. Build client-specific billing rules into the system

For each client, configure:

• Billable vs. non-billable activity codes
• Allowed task descriptions or WBS codes
• Rate cards, caps, and fee arrangements
• Expense eligibility rules
• Approval requirements
• Minimum/maximum time increments
• Overtime, weekend, or holiday billing rules

If the software supports it, use client matter/project templates so users don’t have to remember the rules manually.

2. Standardize time entry fields

Require consistent fields such as:

• Client / matter / project
• Work type or phase
• Activity code
• Date and duration
• Narrative description
• Billable status
• Resource or role

Make certain fields mandatory so incomplete entries can’t be submitted.

3. Use validation and rule checks before submission

Your timesheet software should flag or block entries that violate billing rules, for example:

• Missing client or project code
• Non-billable activity marked as billable
• Exceeds daily or monthly cap
• Wrong rate for the resource
• Unapproved expense category
• Duplicate expense submission
• Unusual time increment or rounding issue

Automated validation reduces rework and noncompliant invoices.

4. Keep narratives billing-compliant

Client billing rules often care about wording. Require narratives to be:

• Specific and concise
• Free of vague phrases like “worked on project”
• Compliant with client language restrictions
• Free of privileged/confidential details if the client disallows them

You can use narrative templates or keyword guidance to help users.

5. Track approvals and audit trails

Every time entry and expense should have:

• Who created it
• When it was edited
• Who approved it
• What changes were made
• Any override reason

This is critical for auditability and dispute resolution.

6. Separate time capture from billing submission

Use a staged process:

1. Employee enters time/expenses
2. Manager/project lead reviews for accuracy
3. Billing/finance reviews against client rules
4. Final invoice is generated
5. Exception report is produced for overrides

This prevents noncompliant items from reaching the client bill.

7. Control expense capture carefully

For expenses, enforce:

• Receipt attachment thresholds
• Allowed categories
• Per diem or mileage rules
• Currency and tax handling
• Preapproval for exceptions
• Date limits for submission

If the client requires original receipts or specific formats, configure those requirements in the workflow.

8. Maintain a rule library and update process

Billing rules change. Assign ownership for:

• Updating client billing guidelines
• Reviewing contract amendments
• Syncing rate cards and caps
• Communicating changes to users
• Retesting workflow rules after updates

Without this, even a well-designed workflow becomes noncompliant over time.

9. Train users on client-specific requirements

Provide short guidance at the point of entry:

• Examples of acceptable narratives
• Expense eligibility rules
• Common rejection reasons
• Escalation contacts for exceptions

Training should be client- and role-specific.

10. Use exception reporting and periodic audits

Run regular reports to identify:

• Rejected entries
• Manual overrides
• Late submissions
• Missing approvals
• Expenses outside policy
• Time entries near cap or outside billing windows

Audit a sample monthly to confirm the workflow is actually working as intended.

11. Integrate with invoicing and ERP systems

If possible, connect your timesheet software to billing/accounting systems so:

• Approved data flows automatically
• Rate cards stay synchronized
• Invoice exceptions are visible before sending
• Duplicate or conflicting records are reduced

12. Document the policy and SOP

Have a written SOP that defines:

• Who enters time and when
• Review/approval timelines
• Exception handling
• Required data fields
• Client-specific deviations
• Retention and audit rules

This helps with compliance, onboarding, and consistency.

Practical implementation checklist

A compliant workflow usually means:

• Client rules configured in the system
• Mandatory fields and standardized codes
• Automated validation checks
• Approval workflow before billing
• Audit trail for every change
• Expense receipt and policy controls
• Exception reports and periodic audits
• Ongoing rule maintenance and user training

If you want, I can also give you:

1. a sample compliant timesheet workflow,
2. a client billing rules checklist, or
3. a control matrix mapping rules to system safeguards.