Your guide to invoices — what is progress billing?
Discover how progress billing benefits customers and contractors for large-scale construction projects.
Typically used for large-scale construction projects, progress billing is a type of invoice that bills for work completed along the way. Instead of invoicing at the end of a project, progress billing occurs incrementally as the project advances.
How does progress billing work?
Usually, both the contractor and the customer discuss and agree upon a payment schedule before work begins. Accurate progress billing is critical for contractors to receive payment for labor and materials costs at regular intervals. An added benefit to the customer, the use of progress billing means they won’t have to fund the entire project upfront.
Traditionally based on the percentage of work that’s been completed, some customers may negotiate to withhold a fixed percentage of the total amount due until project completion. Because payment schedules and tracking completed work can get complex quickly, accurate progress billing procedures are vital to construction company success.
Tell me how to set up and send progress invoices.
Because progress billing protects both the customer and the contractor, it’s important to ensure the billing workflow is solid from the outset. This will help prevent issues before they arise.
To set up progress billing, create a branded invoice template or upload an existing file with an easy-to-use set of online services. Customize your invoices with important details and information according to the project’s contract, payment schedules, and local, state, or federal laws.
Make it easy for customers to review, sign, and pay progress invoices by using e-signature software powered by Acrobat Sign. When you’re ready to bill, all you have to do is enter your customer’s contact information and the invoice is securely sent and encrypted along the way.
Streamline your progress billing process — plus, explore what more you can do with Acrobat Pro with e-sign today.
