Glossary · Sales and receivables
Progress invoicing
Progress invoicing is billing a customer for a large job in stages as the work is done, instead of one invoice at the end. Each invoice covers a percentage of the agreed estimate or the parts completed. It keeps cash coming in during long jobs and shows how much is left to bill.
Glossary / Progress invoicing · Also called Progress billing, Milestone billing, Staged invoicing
How it works
A job that runs for months can leave a business paying for labour and materials long before it is paid. Progress invoicing fixes that by agreeing billing points up front: a percentage at each milestone, or each phase as it finishes.
There are two common ways to work out each invoice. By percentage, you bill a share of the whole estimate, such as 25% when the framing is done. By line, you bill the specific items or amounts completed. Either way, the running total billed should never exceed the estimate without a change order.
In construction, progress invoices often also hold back retainage, a share of each invoice the customer keeps until the job is accepted.
Worked example: A $60,000 renovation billed in three stages
A contractor's estimate for a renovation is $60,000. The contract sets three billing points.
| Stage | Billed | Billed to date | Left to bill |
|---|---|---|---|
| Demolition and framing, 30% | $18,000 | $18,000 | $42,000 |
| Electrical, plumbing, drywall, 40% | $24,000 | $42,000 | $18,000 |
| Finishing, 30% | $18,000 | $60,000 | $0 |
In AcboBooks
In AcboBooks, Progress Invoice on an estimate bills either a percentage of the whole estimate or chosen lines and amounts. The estimate then shows the amount billed on each line and the percentage billed so far. Retainage can be held on a job and released when the work is accepted.
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Updated October 25, 2026. General information, not tax, legal or accounting advice. Rules and rates change; check with the IRS, the CRA, your state or province, or your accountant.
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