Progress (or Milestone) invoicing is essential for large, long-term projects. Learn how to structure and implement this billing method.
If you're working on a multi-month project—like web development, construction, or extensive consulting—waiting until the end to bill is a cash-flow killer. That's where progress billing comes in.
What is Progress Billing?
It's billing in stages based on milestones completed or a percentage of the total work done. It ensures you have the capital to fund the project as you go.
When Should You Use It?
- Project duration is over 30 days.
- Total project cost is significant.
- You have material/upfront costs.
Structuring Your Progress Invoice
Your invoice must clearly state:
- The specific milestone completed (e.g., "Phase 1: Design Approval").
- The total contract value.
- The percentage of the total being billed in this invoice.
- The cumulative amount billed to date.
Example: *Total Project: $10,000. Milestone 2 (40% Complete): $4,000.*
Invoice ASAP supports progress billing, allowing you to easily track the overall project and generate partial invoices based on completion percentages.
Tags:
#progress-billing#large-projects#cash-flow#milestones