There is a category of business risk that is particularly deceptive: the kind you cannot see. Unbilled work falls squarely in that category. The project runs, the team works, costs accrue — but the money is not arriving yet. Because the invoices have not been sent. The Unbilled KPI makes exactly this silent risk visible: it shows the amount that has been economically earned but not yet formally claimed.
What Is the Unbilled KPI?
Unbilled is the total value of delivered project services for which no invoice has yet been sent to the client. The money is theoretically earned — the work has been done, the value has been created — but the formal step of invoicing is still missing, which means the payment process has not yet begun.
A high Unbilled amount means the company is bearing costs — salaries, infrastructure, software licenses, overhead — while the corresponding client payment is still pending. The longer work remains uninvoiced, the greater the pressure on working capital becomes.
How Is Unbilled Calculated?
The formula is direct and simple:
Unbilled = Actual Revenue − Billed
Where:
- Actual Revenue: the total revenue earned so far — all delivered services, valued at each team member’s billing rate
- Billed: the portion already invoiced (KPI A.7)
Example from the Dashboard
| Metric | Value |
|---|---|
| Actual Revenue (total earned revenue) | €7,740 |
| Billed (already invoiced) | €3,870 |
| Unbilled (not yet invoiced) | €3,870 |
Of €7,740 in delivered work, €3,870 has not yet been invoiced. This amount is ready to bill immediately — it just needs to be claimed.
To be concrete: the services have been delivered, the time entries are in the system, the team members have been paid. Only the invoice is missing. This is not an abstract accounting issue — it is an open liquidity gap.
What Does This Mean in Practice?
Interpreting the Unbilled KPI is straightforward:
- Unbilled ≈ €0: All delivered work has been invoiced. Optimal cash flow — performance and billing are fully synchronized.
- Unbilled moderate (equivalent to 1–2 billing cycles): Normal for projects with monthly or milestone-based billing. No immediate action needed, but regular monitoring is advisable.
- Unbilled high (more than 2 billing cycles): Invoices must go out immediately. Every uninvoiced euro is an interest-free loan to the client — funded by your own working capital.
In the example: €3,870 Unbilled represents 50% of the project’s revenue to date. That is a clear signal that the next invoicing run should not wait.
The connection to A.7 (Billed): Billed + Unbilled = Actual Revenue. The two KPIs are two sides of the same coin. While Billed shows what has already been converted to cash flow, Unbilled shows what still can and must be converted.
Three Perspectives on the Unbilled KPI
What the Project Manager Sees
The PM sees which services are already ready to invoice. They can prepare the next billing run, communicate with the client, and ensure that no delivered work “falls through the cracks” — meaning work that was performed but never invoiced because it was overlooked in the system.
What C-Level Sees
Executives view Unbilled as a working capital metric. A chronically high Unbilled value — across multiple projects and months — can lead to liquidity constraints despite solid operational profitability. For corporate controlling, Unbilled is as relevant as EBITDA or the order backlog.
What the Team Lead Sees
The team lead understands that Unbilled is a direct result of time-tracking quality. Only services correctly and promptly logged in the system can be invoiced. Gaps in time tracking translate directly into higher Unbilled amounts.
Common Mistakes and Pitfalls
The most frequent mistake: Unbilled is treated as an administrative task to be handled “at some point” — a low-priority item that gets squeezed between other work. In practice, this leads to a steadily growing Unbilled backlog that appears as a cash flow problem at the end of a project or fiscal year.
A second mistake: no clear ownership of the invoicing process. When it is unclear who is responsible for invoicing what and when, gaps and duplication arise. Unbilled becomes a symptom of a process failure.
A third pitfall: incomplete time tracking. When team members deliver work but do not log it, no Unbilled entry is created — but the work was still done and still caused costs. The effect: Unbilled looks low, but margin does not.
A fourth pitfall — and the most expensive: completed services are never invoiced because “the project is already closed.” This is literally giving money away.
How zistemo Delivers the Unbilled KPI
1. Full Visibility of All Uninvoiced Services
zistemo displays all time entries with the status “not invoiced” clearly in the dashboard — listed by team member, task, and time period. There are no hidden or forgotten services. What has been delivered is visible — and can be invoiced.
2. One-Click Invoicing Directly from the Timesheet
All unbilled time entries can be transferred to an invoice with a single click. zistemo automatically generates the invoice including line item descriptions, billing rates, and totals. Unbilled and Billed update immediately afterward — no manual step, no transcription error.
3. Team Monitor and Project Cockpit
The Team Monitor in zistemo shows in real time which team members are working on which projects and which services have not yet been invoiced. The Project Cockpit summarizes Unbilled, Billed, Actual Revenue, and Billing Rate at a glance — an immediate situational overview without any reporting effort.
zistemo USPs: Why Unbilled Stays Under Control Here
Real-Time Data Instead of Spreadsheet Graveyards
In organizations without an integrated system, the Unbilled picture only emerges after someone manually reviews time logs, collects open invoice positions, and assembles a summary — a process that takes hours and is error-prone. In zistemo, the Unbilled overview is current at all times, available on demand.
More Clarity — No More Forgotten Invoices
Managing Unbilled in zistemo means there is no reason for a delivered service to go uninvoiced. The system does not send explicit reminders — but it makes Unbilled visible at all times. Transparency is the best prevention against forgotten invoices.
Accounting Integrations
zistemo integrates with common accounting systems. Invoices created in zistemo can be transferred directly to accounting — no double entry, no manual reconciliation, no delays.
Related KPIs
- Billed (€) — the complementary KPI for already invoiced work
- Actual Margin — running profit per project
Conclusion
Unbilled is the silent adversary of healthy cash flow. It does not arise from poor work — it arises from a process that allows too large a gap to grow between service delivery and invoicing. The good news: Unbilled is entirely manageable. Organizations that maintain consistent time tracking, define clear invoicing processes, and monitor this KPI regularly keep their working capital under control.
The €3,870 Unbilled in the example project is not lost — it is waiting for an invoice. With zistemo, that takes exactly one click.
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FAQ
What is the difference between Unbilled and accounts receivable?
Unbilled represents services for which no invoice has yet been issued. Accounts receivable are invoices that have already been sent but not yet paid. Unbilled comes before accounts receivable — it is the stage between delivered service and issued invoice.
How quickly should Unbilled work be invoiced?
As quickly as possible, ideally within the contractually agreed billing cycle (monthly, per milestone, etc.). Services that remain uninvoiced for more than 60 days increase the risk of non-collection and unnecessarily tie up working capital.
Can Unbilled be zero while a project is still running?
Yes — if services are invoiced in the same cycle in which they are delivered. That is the ideal: work delivered, invoice sent, payment on its way. In practice, some Unbilled volume is normal, but it should be controlled and kept within one billing cycle.
