An invoice arrives in October for work completed in September. If the forecast already included an accrual, adding the bill again overstates the cost. Legal spend management depends on getting distinctions like this right. These questions help Legal and Finance reconcile the work behind their numbers before month end.
Why Does a Forecast Need More Than Invoice Totals?
Invoices tell you about work that has reached a billing cycle. They may omit recent work and say little about the cost of the next phase. Ask the matter owner what remains in the approved assignment and obtain the firm’s estimate for that work.
CLOC’s 2026 findings identify financial management as a major legal operations priority. A useful response is a forecast whose changes can be explained: additional scope, delayed billing or a different staffing assumption. Keep those explanations with the numbers so the next review starts from the same understanding.
Which Numbers Should Legal and Finance Agree On?
Define billed, approved, paid, accrued and forecast amounts with finance. A paid invoice and an approved invoice are different states of the same expense, not two amounts to add together. Specify the currency, reporting period and treatment of taxes or expenses.
Connect every invoice to a matter and engagement. Record the approved rates or fee arrangement and identify who can approve exceptions. An unclear scope should return to the matter owner before it becomes a recurring invoice dispute.
How Should We Check the Forecast?
Ask firms for unbilled work through the reporting date and a forecast for the remaining approved phase. Compare that information with invoices and the matter owner’s view of upcoming activity. Investigate unexpected changes before reporting a revised total.
| Question | Evidence |
|---|---|
| What Has Been Billed? | Invoice register by matter and period |
| What Remains Unbilled? | Firm confirmation of work through the cutoff |
| What Comes Next? | Remaining scope and forecast assumptions |
| What Changed? | Explanation of scope, timing or staffing changes |
| Who Agrees? | Matter owner and finance review |
What Needs Review Before Payment?
The FBI describes business email compromise schemes involving altered vendor payment instructions. Verify changed bank details through the company’s established independent process. An apparently familiar email thread is not sufficient evidence. Keep payment authorization with the authorized finance team while legal operations coordinates the matter and billing information.