How to Create a Progress Invoice in QuickBooks Online

To create a progress invoice in QuickBooks Online, enable progress invoicing, then build invoices from your estimates based on completed work or milestones. This keeps your cash flow steady and clients informed throughout the project.

Turn On Progress Invoicing in QuickBooks Online

Before creating progress invoices, you need to enable the feature in your account settings.

Here’s how:

1. Go to Settings ⚙️ > Account and settings.
2. Select the Sales tab.
3. In the Progress Invoicing section, click Edit (✏️).
4. Check the box “Create multiple partial invoices from a single estimate.”
5. Click Save, then Done.

This setting allows you to create invoices directly from estimates, billing clients for partial amounts over time.

Create an Estimate for Your Customer

Progress invoices are based on estimates, so you’ll first need to create one for the full project value.

To create an estimate:

1. Go to + New > Estimate.
2. Choose your Customer from the dropdown list.
3. Enter details such as Estimate Date, Expiration Date, and Estimate Number.
4. Add line items for materials, labor, or services.
5. Include quantities, unit prices, and descriptions.

Example:

Once you review the details, click Save and Send or Save and Close.

Convert the Estimate into a Progress Invoice

When you’re ready to bill your client for part of the work, you can convert the estimate into a progress invoice.

Here’s how:

1. Go to Sales > Customers.
2. Find the customer and open their Estimate.
3. Click Create invoice at the top of the screen.
4. QuickBooks will ask how much you want to invoice. Choose one of the following options:
   
   • Invoice a percentage of the entire estimate (e.g., 25% upfront, 50% after phase one)
   • Invoice a custom amount for each line item (useful if certain tasks are partially complete)
   • Invoice for selected items or specific completed phases

Example: If you’ve completed half of the work, select “Percentage of each line” and enter 50%.

QuickBooks automatically calculates the partial totals for each item.

Review and Customize the Progress Invoice

Before sending your progress invoice, make sure all information is accurate and professional.

Check the following:

• The invoice date and due date
• The partial amounts billed
• Remaining balances from the estimate
• Payment terms and methods (ACH, credit card, etc.)
• Notes describing the project phase or completed work

Example:

“This invoice covers 50% of project completion for the kitchen remodel, including cabinetry installation and plumbing setup.”

You can also upload your business logo or adjust layout preferences to match your branding.

Send the Progress Invoice to Your Customer

Once reviewed, send the invoice directly from QuickBooks Online.

To send:

1. Click Save and Send.
2. Add a personalized email message such as: “Hi [Customer Name], please find attached the progress invoice for the completed portion of your kitchen remodel. Thank you for your continued trust!”
3. Click Send and Close.

Your customer will receive the invoice via email, along with a link to pay online (if online payments are enabled).

Track Payments and Remaining Balances

QuickBooks automatically keeps track of what’s been invoiced and what remains outstanding on the estimate.

To view this:

1. Go to Sales > Estimates.
2. Find your estimate and look at the Invoice Status column.
3. Click into the estimate to see details like:
   
   • Amount invoiced to date
   • Remaining balance
   • Linked invoices and payments

You can continue generating new progress invoices until the entire estimate has been billed and paid.

Automate Recurring and Progress Invoices with DepositFix

If you frequently bill clients in stages or on recurring schedules, DepositFix can simplify your recurring billing and progress payment process. With DepositFix:

• You can automate invoice creation and schedule payments for recurring projects.
• Collect credit card or ACH payments directly from your invoices.
• Sync payments seamlessly with your accounting system for accurate reporting.
• Reduce manual follow-ups with automated reminders and payment tracking.

DepositFix helps businesses streamline the invoicing process, ensuring payments arrive on time and projects stay financially on track.