Deposits and Progress Invoices: Best Practices

Last updated: 19 February 2026

For material-heavy work, long lead times, or new clients, billing only at completion can expose you to cost and cash-flow risk. Deposits and progress invoices are standard in many trades and services. Document the schedule in the quote or contract before work begins.

When to use a deposit

Deposits are appropriate when you incur upfront costs (stock, permits, subcontractor deposits) or need commitment before you reserve capacity. Specify the amount as a percentage or fixed sum on the quote, then issue a separate numbered invoice for the deposit so accounting entries stay clear.

Progress invoices

Divide the project into billable stages that match delivery (for example phase completion or defined milestones). Invoice each stage when that stage is complete, not only at project end. Payment terms should state due dates for each progress invoice.

Final invoice

The closing invoice should reconcile to the accepted quote and any written change orders. Confirm variations in writing before issuing the final total to limit scope disputes.

BillBench^™

Use the same client and job context across quote, deposit or progress invoices, final invoice, and receipt as needed. BillBench^™ supports that document sequence with PDF output.