2.3.1 – Quotes and Invoices

1. Purpose

This SOP outlines the standardized process for account management at Arcanary, covering account setup, file management, quotes, invoices, and financial tracking. The objective is to ensure a structured, transparent, and efficient approach to handling client accounts.


2. Scope

This procedure applies to all Arcanary team members involved in account management, including:

  • Project Managers
  • Finance & Administration Team
  • Business Development Team

3. Definitions

3.1 Account

An account is the entity responsible for financial transactions in a project. It can be:

  1. Private Account – Individuals or families.
  2. Business Account – Companies or corporate clients.
  3. Institutional Account – Government agencies or councils.

The account is separate from the project but linked for financial tracking.


4. Account Setup & File Management

4.1 Account Folder Structure

Each account is assigned a dedicated folder in the shared drive, separate from project files:
📂 Accounts Drive

  • 📁Account Folder: [Account Number] – [Account Name]
    • 📂 Project Folder: [Project Number] – [Project Name] – [Project Code]
      • 📂 Financial Folder: [YYMMDD] – [Subject]

4.2 Naming Convention for Accounts

Naming

  • Private Clients: [Full Name] (e.g., Peter Smith)
  • Couples or Joint Owners: [Name1] and [Name2] (e.g., Peter and Kelly Smith)
  • Businesses: [Business Name] PTY LTD (e.g., Smith Family PTY LTD)
  • Institutions: [Official Name] (e.g., City of Sydney Council)

Numbering

  • Time Stamp when the account is created: [YYMMDDHHMM]

for example: 2411252230 (Account created on the 25th Nov 2024 at 1030 PM)

4.3 Contact Tracking

Each account must have at least one contact (primary contact), but it is preferable to have two. Contacts will need to be saved in the USERS table in the databased through the CRM system.


5. Quotes Management

5.1 Service Proposals & Leads

  • When a new lead is generated, a Service Proposal is prepared outlining scope, deliverables, and pricing.
  • If the client agrees, the first official quote (Q01) is issued based on the service proposal.

5.2 Quote Structure & Naming

Each quote follows a standardized naming convention:
📄 [Project Name] - Q[##] - [Service Description]

## = Sequential as cending number two digits, related to a single quote. Start sequence on each new quote

Example:

  • 10 Myuna Road – Q01 – Architectural Services
  • 10 Myuna Road – Q02 – Interior Design Services

5.3 Quantity & Pricing Rules

  • Fixed-Fee Service / Product: The quantity is normally set to 1, and the price is the total amount.
  • Stage-Based Services: The total price is quoted as 1 unit, but invoices later reflect percentage-based billing.
  • Rate-Based Services: The quantity is set to 0, and only the rate is provided.

Example:

ServiceQuantityPrice
BAIX Certificate (2x dwellings)2$950
Architectural Design1$15,000
Nominated Architect (Hourly)0$270/hr

5.4 Approval & Documentation

  • All quotes must be documented and approved before any work begins.
  • If changes occur (e.g., variations, RFIs, additional services), a new quote must be issued.

6. Invoice Management

6.1 Invoice Naming Convention

Invoice Number

The invoice number is given by the accounting software, and it looks like: IN1973.

Invoice Reference

Invoices follow a structured format linked to a specific quote:
📄 [Project Name] - Q[##].I[##] - [Invoice Description]

  • ## = Sequential as cending number two digits, related to a single quote. Start sequence on each new quote

Examples:,

  • 10 Myuna Road – Q01.I01 – Deposit Invoice
  • 10 Myuna Road – Q01.I02 – Progress Claim January 25
  • 10 Myuna Road – Q02.I01 – Interior Service Deposit

6.2 Invoicing Structure

  • Each invoice must be linked to only one quote.
  • Staged Payments: If billing is percentage-based, the quantity in the invoice reflects the percentage (e.g., 0.2 = 20%).
  • Rate-Based Services: Invoice quantity represents actual hours worked.

Example: Percentage-Based Invoicing for a $20,000 Quote

Invoice NameQuote ReferenceQuantity (Invoice)Amount Charged
Deposit InvoiceQ010.2 (20%)$4,000
Progress Claim – JanQ010.3 (30%)$6,000
Progress Claim – FebQ010.3 (30%)$6,000
Final PaymentQ010.2 (20%)$4,000

7. Payment Tracking & Statements

7.1 Payment Terms & Methods

  • Payment terms are defined in the contract and quoted in invoices.
  • Accepted methods: Bank Transfer, Credit Card, PayPal (if applicable).
  • Late payments trigger reminders and follow-ups via the finance team.

7.2 Statements & Notifications

Clients receive:

  • Statements: Summarizing outstanding payments.
  • Reminders: Automatic notifications for overdue invoices.

8. Compliance & Documentation Best Practices

8.1 Documentation Standards

  • Every quote and invoice must be documented, stored, and linked to the corresponding account.
  • No services should be provided without a signed quote.

8.2 Audit & Review Process

  • Financial records must be reviewed monthly by the Finance/Admin team.
  • Annual audit ensures compliance with internal policies.

9. Responsibilities & Roles

RoleResponsibilities
Project ManagerInitiates quotes, ensures service documentation.
Finance/Admin TeamIssues invoices, tracks payments, manages statements.
Business DevelopmentGenerates leads, prepares service proposals.

10. Review & Amendments

  • This SOP will be reviewed annually or as needed.
  • Updates will be communicated to all relevant team members.

11. Summary of Key Rules

Every service must be backed by a quote.
Invoices must always link to a single quote.
Naming conventions must be followed for all quotes and invoices.
Stage-based invoicing uses quantity values from 0 to 1.
Accounts and financials are stored in separate folders.
Regular payment tracking and reminders must be maintained.