Contractors carry more upfront cost than most trades: materials, labour, and time, often weeks before the client pays. Invoicing well is how you protect your cash flow so the job funds itself rather than draining your account.
Take a deposit up front
For any job of real size, invoice a deposit before work starts. It covers early material costs and confirms the client is committed. Spell the deposit out in your quote so there are no surprises, then bill it as the first invoice on the job.
Bill progress as you go
Progress billing means invoicing in stages tied to the work completed, rather than waiting until the end. Common approaches:
- By milestone: invoice when a defined stage is finished (foundation, framing, fit-out).
- By percentage complete: invoice an agreed percentage of the total as the job progresses.
- By period: for long jobs, invoice monthly for work done that month.
Progress billing keeps money coming in steadily, so you are never carrying the full cost of a long job on your own balance sheet.
Handle retention clearly
On many contracts a client holds back a small percentage (retention) until the work is signed off. Show it clearly on the invoice so both sides know what is held and when it is released. Tracking retention properly means you actually collect it, rather than letting it slip once the job is done.
Bill materials and expenses back
Log the materials and costs for a job and add them to the client invoice, with receipts attached where needed. That way nothing you spent on the job comes out of your margin by accident.
Make it easy to pay, and chase automatically
Add an online payment option so clients can pay from the invoice, and set automatic reminders so overdue amounts get chased without you making the awkward call. On a job with deposits, progress payments, and retention, staying on top of what is outstanding is half the battle.
The right setup
Billbooks handles deposits, staged invoices, billable expenses, and automatic reminders, with one view of what every client still owes. See invoicing for contractors.
Choosing a tool? Compare on the full cost and features, not just the sticker price. The comparison hub shows how Billbooks measures up, and if you work across regions, the country guides such as invoicing software for the US cover the local tax details.
The short version
- Deposit up front to fund early costs.
- Progress billing by milestone, percentage, or period.
- Track retention so you actually collect it.
- Bill materials back so they do not eat your margin.
- Reminders and easy payment so you get paid on time.
