A billing method where invoices are issued at predetermined milestones or stages of a project, rather than all at once upon completion.
Progress invoicing is common in construction, consulting, and project-based businesses. Instead of billing the full amount at the end, you bill incrementally as work is completed — for example, 30% at foundation, 30% at framing, and 40% at completion.
Modern CRMs support four types of progress invoices: deposit invoices (upfront payment), progress invoices (milestone billing), standard invoices (regular billing), and final invoices (remaining balance after all progress payments).
Key concepts
- Retention — a percentage withheld from each payment until project completion
- Cumulative Billing — tracking total billed vs. contract value
- Previous Quantities — referencing prior invoices in current billing
