Financial & invoicing terms explained
Progress billing (Milestone billing)
Progress billing (milestone billing) means invoicing a contract in several payments as the work moves forward, instead of one bill at the end.
How it works
A schedule of values splits the contract into stages. Each invoice bills the percentage of each stage completed so far, less what was billed before.
Retainage
Contracts often hold back a percentage of every progress payment and release it when the job closes.
In Invoice My Clients
Progress billing on the Professional plan and above tracks the job and fills in each application for you, including retainage.
Free tools
Progress billing (Milestone billing) - FAQ
Progress billing vs milestone billing?+
Largely the same idea. Milestone billing bills a stage when it is finished; progress billing can also bill a stage that is partly complete.
What is a schedule of values?+
The list of stages or items in a contract and what each is worth. Progress invoices bill a percentage of each line.
How does retainage fit in?+
A percentage of each progress payment is held back until the job closes, then billed as a release.