Progress invoicing: how to bill a multi-day job in stages
Progress invoicing means billing a bigger job in agreed stages instead of all at the end. Write the payment schedule on the estimate before work starts, tie each payment to a stage the customer can see finished, send one invoice per stage, and show the job total, payments so far, this invoice, and the balance left.
This is general guidance, not legal or tax advice. Every amount and message on this page is a fill-in example with [placeholders], not a recommended split.
Want to try it now? The free version works in your phone's browser: estimates, invoices, job photos, your own payment link, and a PDF you can send. It doesn't have payment schedules or progress invoices; for now, put the stage and running balance in the invoice's line items (a $0 text line works for the running balance). No account needed. It saves only on that device, so download a backup from Settings now and then.
What progress invoicing is, and when a small job needs it
This guide is for small jobs billed directly to a homeowner. Larger or commercial jobs often use retainage (holding back part of each payment until the end) and other rules this page doesn't cover.
Consider billing in stages when a job runs over several days or weeks, or when you'd otherwise be paying for a lot of materials and labor before the customer pays anything. For a one-day job, a single invoice at the end (with a deposit up front, if you take one) is usually simpler.
Deposit, stage payments, and final payment: how they fit together
Payment 1 is usually the deposit, due before materials are ordered. Then come one or more stage payments, each due when a stage is finished. The last one is the final payment for whatever balance is left. The deposit has its own guide: how to ask for a deposit. This page picks up from there.
Put the payment schedule on the estimate
The customer should see the whole schedule before they approve the job, not find out about stage payments halfway through. If you're still working out your estimate format, see how to write a contractor estimate or start from the free estimate template.
Tie each payment to a stage the customer can see
"Framing in place" or "old roof off and new underlayment down" is something the customer can walk out and check. "Week two" or "halfway" isn't. Visible stages make each invoice easy to agree with.
Write amounts in dollars that add up to the job total
Put a dollar amount on every payment, and check that they add up to the job total. You can show a percentage next to each one if it helps, but the dollar figure is what the customer pays.
Say how changes are handled
Put a line like this on the estimate: "Changes to the scope will be priced and approved in writing before the work is done, and added to the next payment." Saying that up front keeps every later invoice adding up.
Example wording you can adapt for the estimate:
Payment schedule wordingPayment schedule: $[deposit amount] due at approval to order materials and reserve your start date. $[stage amount] due when [stage the customer can see, e.g., old material removed and new framing in place] is complete. Balance of $[final amount] due when the job is finished and we've walked through it together. Changes to the scope will be priced and approved in writing before the work is done, and added to the next payment. Pay any stage here: [your payment link].
Sample payment schedule (fill-in table)
| Payment | Due when | Amount |
|---|---|---|
| 1. Deposit | Estimate approved, before materials are ordered | $[amount] |
| 2. Stage payment | [Stage the customer can see finished] | $[amount] |
| 3. Stage payment (optional) | [Second visible stage] | $[amount] |
| 4. Final payment | Work complete and walkthrough done | $[amount] |
| Total | $[must equal the job total] |
If the customer approves a change later, add its price to the next payment.
Before you use this: some states limit how much you can collect before work is done, or require certain wording in home improvement contracts. Check with your state's contractor licensing board or consumer protection office. This is general guidance, not legal or tax advice.
What goes on each progress invoice
Each stage invoice is a normal invoice with a running balance added. The basics (your details, a clear due date, how to pay) are in how to write an invoice that gets paid on time, and the free invoice template has room for all of it.
Sample progress invoice
| Line | Example |
|---|---|
| Header | Invoice #[number] · [job] at [address] · Estimate #[number] |
| This stage | Payment [2] of [3]: [stage] complete on [date] |
| Original job total | $[original estimate total] |
| Approved changes | $[amount] (or "None") |
| New job total | $[original + changes] |
| Paid so far | $[total paid] (list each: [payment] $[amount] on [date]) |
| This invoice | $[stage amount] + $[approved changes added to this payment, if any] |
| Balance left after this invoice | $[new total − paid so far − this invoice] |
| Due / how to pay | Due [date] · Pay here: [your payment link] |
A text to send with each stage invoice
Stage invoiceHi [Name], [stage] is done. Photos attached. Here's invoice #[number] for payment [2] of [3], $[amount], as listed on the estimate. You can pay here: [your payment link].
The final invoice: closing out the job
The final invoice lists every earlier payment, any approved changes, and the balance due, so the customer can see the whole job add up on one page. Send it after the walkthrough. The free invoice template works for this too.
Final invoiceHi [Name], the [job] is finished. Thanks for having me. Here's the final invoice, #[number]: $[amount] balance, with your earlier payments listed. Pay here: [your payment link].
If a stage payment is late
Follow up the same way you would on any unpaid invoice (see how to follow up on an unpaid invoice), and talk it through with the customer before the next stage starts.
If a customer doesn't pay, you may have legal options such as a lien, but they often come with notice requirements and deadlines, and some start before the job does. Ask your state's contractor licensing board or a local attorney about this before you start a job you'll bill in stages.
Check your state's rules first
Some states have rules about how much a contractor can collect before work is done on home improvement jobs, and some require a written contract with specific wording. Check with your state's contractor licensing board or consumer protection office before you set your schedule. This is general guidance, not legal or tax advice.
Frequently asked questions
What is progress invoicing?
It's billing a job in agreed stages, one invoice per stage, instead of a single invoice at the end. Each invoice shows that stage's payment and how much of the job total is left.
How is it different from a deposit?
A deposit is one payment before work starts. Progress invoicing covers the payments during and after the work: it usually starts with the deposit, adds one or more stage payments, and ends with a final invoice for the balance.
When should a small job be billed in stages?
Consider it when a job runs over several days or weeks, or when you'd otherwise be paying for a lot of materials and labor before the customer pays anything.
Should the stages be percentages or dollar amounts?
Write dollar amounts on the estimate, and make sure they add up to the job total. You can show a percentage next to each one if it helps, but the dollar figure is what the customer pays.
What if the customer doesn't pay a stage on time?
Follow up the same way you would on any unpaid invoice, and talk it through before the next stage starts. What happens next should match what you both signed. In some states a home improvement job needs a written contract, not only an approved estimate, so check before the job starts. If a customer doesn't pay, you may have legal options such as a lien, but they often come with notice requirements and deadlines, and some start before the job does. Ask your state's contractor licensing board or a local attorney about this before you start a job you'll bill in stages.
What if the job changes partway through?
Price the change and get the customer's OK in writing before doing the work, then add it to the next stage payment so every invoice still adds up.
Templates for jobs that often run several days
Start from the deck invoice template, roofing invoice template, concrete invoice template, or fence invoice template, or browse all invoice templates by trade. Put the stage and running balance in the line items.
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