An ERP such as Microsoft Dynamics 365 Business Central provides a strong foundation for financial and operational management. However, when it comes to managing complex projects, varied contract structures, and multiple billing methods, many firms quickly realize that more specialized capabilities are needed to truly reflect their operational reality.
This is especially true for engineering firms, architectural practices, consulting firms, IT services organizations, staffing and resource outsourcing firms, and accounting firms, where projects are constantly evolving and billing must adapt to highly specific operational and contractual contexts.
In this article, we review the essential project billing capabilities that a project-oriented ERP should provide to effectively support professional services organizations, both today and in the long term.
Billing capabilities tailored to project-based organizations
Within the Microsoft Dynamics 365 Business Central ecosystem, many organizations find that certain project management and billing requirements go beyond the standard functionality of a financial ERP. Contract complexity, diverse billing models, and the need for precise project-level tracking often require more advanced capabilities.
To address these realities, complementary solutions designed specifically for professional services organizations can extend the ERP without compromising its structure or integrity. These tools make it possible to adapt billing to complex contracts, improve project visibility, and ensure greater financial accuracy.
1. Multiple billing methods to reflect real-world contracts
Professional services firms do not bill all projects the same way. Some contracts are based on time and materials, while others rely on fixed fees, milestones, or progress billing. A project-oriented ERP must be able to support this diversity without compromise.
Flexible billing capabilities make it possible to adapt the billing method to each project and each client. Hours worked, costs incurred, and project progress are automatically captured, and multiple billing methods (time and materials, fixed fee, or even a combination of both) can coexist within the same project, accurately reflecting contractual realities.
2. Detailed tracking of project-related transactions
Billing accuracy depends on the quality of data tracking. A project ERP must provide full visibility into billable activities, including employee time entries, incurred costs, generated revenue, and project progress.
This level of detail is essential not only for transparency with clients, but also for financial analysis, internal audits, and informed decision-making. Managers gain access to reliable information that allows them to monitor project performance and take corrective action when needed.
3. Advanced management of billing rates and billing cycles
In professional services firms, billing rates often vary based on roles, resources, or types of activities, and may differ by project or by client. A project-oriented ERP must allow these different rates to be configured in a structured way and applied automatically during billing.
This capability helps maintain an efficient billing cycle, reduces manual adjustments, and ensures invoices accurately reflect client agreements.
4. Customizable and professional invoice templates
Invoices are a key touchpoint in the client relationship. They must be clear, consistent, and aligned with the organization’s brand. Customizable invoice templates allow firms to meet client expectations while adhering to internal requirements.
This flexibility goes beyond branding and extends to how information is presented. Organizations may choose to display the original project budget, billing to date, or even detailed activity breakdowns derived from timesheets. This approach enhances the client experience and reinforces the firm’s professionalism, particularly in industries where trust is critical.
5. A simplified and collaborative billing process
Project billing often involves multiple teams, including project managers, finance, and executive management. A well-structured ERP centralizes information and facilitates collaboration among stakeholders.
By providing a shared view of what needs to be billed, organizations reduce omissions, speed up the billing process, and improve revenue predictability, a key challenge for professional services firms.
Project billing as a pillar of ERP performance
For engineering firms, architectural practices, consulting firms, and IT services organizations, billing is more than a financial function. It is closely tied to project management, profitability, and growth.
By combining a robust ERP like Microsoft Dynamics 365 Business Central with specialized modules designed for project-based organizations, firms can go further in their financial management while maintaining a cohesive and scalable ERP structure.
This is where a module like OMZY naturally fits into the Business Central ecosystem. In addition to supporting complex billing methods, OMZY enables structured budgeting, detailed project-level financial tracking, and resource planning aligned with the operational realities of professional services firms. This approach transforms Business Central into a complete project financial management system, providing greater visibility into costs, revenue, and profitability throughout the entire project lifecycle.
Want to learn more?
Get in touch with our team to schedule a demo of OMZY and see how it complements Microsoft Dynamics 365 Business Central to support project financial management and billing for professional services firms.
