QuickBooks Progress Invoicing for Construction Accounting [Step-by-Step Guides on Latest Version]
Updated: Sep 11
Let's talk payments. Do you prioritize timely payments? The secret lies in timely invoicing.
Especially for those in the Construction Industry, managing finances is paramount. As a contractor, you're often engaged in long-term projects, and asking for the entire payment either at the project's onset or conclusion isn't always feasible or appealing to clients.
That's where the magic of Progress Invoicing comes into play.
With progress invoicing QuickBooks Desktop offers, businesses can ensure a smoother, more transparent billing process tailored for projects that span across multiple stages or extended periods.
What is Progress Invoicing in QuickBooks?
At its core, progress invoicing allows businesses to bill clients in increments based on the completion or progression of work. Rather than a single, overwhelming invoice at the end, it's about providing clients with a clear, transparent financial breakdown as the project evolves.
When Would You Use Progress Invoicing?
The question of when would you use progress invoicing QuickBooks often arises. It stands out as a beacon of financial organization, especially in industries with multi-staged or extended projects:
Long-Term Projects: Projects spanning several weeks or months can benefit immensely from progress invoicing. It ensures a consistent cash flow throughout the project duration.
Milestone-Based Projects: For projects structured around specific milestones, this invoicing method assures clients they're paying for tangible, completed work.
Resource Intensive Phases: Stages that require significant resources or capital can be billed promptly, ensuring financial fluidity.
Maintaining Transparency: It's not just about finances. Progress invoicing in QuickBooks provides a clear breakdown, fostering trust and minimizing potential disputes.
Financial Forecasting: Regular invoicing aids in financial planning for both businesses and clients.
Now, we understand what Progress Invoicing is and when you may use it. Let us go step by step on how to generate a progress invoice.
Step-by-Step to Progress Invoicing QuickBooks Desktop
Step 1: Turn on the Feature
Sign in as an admin.
Navigate to File menu > 'Switch to Single-user mode'.
Opt for Jobs & Estimates, and under the Company Preferences tab, choose 'Yes' for both ‘Do you create estimates?’ and 'Do you do progress invoicing?'.
Save preferences and, if needed, revert to Multi-user mode.
Step 2: Crafting the Perfect Estimate
Before you can send a progress invoice, creating a comprehensive estimate is crucial:
Go to the Customers menu > Create Estimates.
Select your client and fill in the necessary details.
Save the estimate. Remember, if using the job feature, link the estimate to the job to ease the progress of invoice creation later.
Step 3: Generate Progress Invoices from Estimates
Access the Customers menu > Customer Center.
Find your client's estimate and open it.
Click on ‘Create Invoice’ and decide the billing amount, either as a percentage or a specific sum for selected items.
Save the estimate. Remember, if using the job feature, link the estimate to the job to ease the progress of invoice creation later.
The beauty of QuickBooks is that your original estimate remains untouched even after creating a progress invoice, ensuring clarity and no discrepancies.
**Note: QuickBooks safeguards against over-invoicing. Should you try billing more than 100% of the estimate, a warning prompt will appear.
Step 4: Monitoring Progress Invoice
Stay updated with your invoices:
On an estimate, the side panel provides insightful details.
For a deeper review, visit the Reports Center. Navigate to Jobs, Time & Mileage > ‘Job Progress Invoices vs. Estimates’ report.
The CCA Advantage: Expertise in Progress Invoicing
While QuickBooks progress invoicing is user-friendly, there's undeniable value in expert guidance. Regular bookkeeping checks ensure precision and can spot inadvertent errors. At CCA, our proficiency in tools like QuickBooks and Sage 100 Contractor ensures that your progress invoicing is timely and accurate.
Progress invoicing in QuickBooks Desktop is a game-changer for construction businesses, ensuring smooth operations and financial transparency. And remember, for that extra touch of precision and expertise, CCA is just a call away.
Engage with us below or book a FREE consultation for any queries or support!
