Staged invoicing: deposit, milestones and final on one job number

The money that quietly disappears

Here is a common failure in field service software: a quote carries a deposit, the deposit invoice goes out and gets paid, and then nothing. The balance never gets raised, the job looks finished, and the only trace of the missing money is a gap in the bank account months later. Staged invoicing exists so that cannot happen.

How it works

1. At signing, the deposit invoice is raised. Example: job #1030, deposit is #1030-1.
2. For bigger jobs, add milestones in between: rough-in, materials delivered, inspection passed.
3. When the work is done, the balance is raised as the last stage, for example #1030-2.

A job billed in one go stays plain #1030. Most jobs are a single invoice and do not need to be dressed up as a series.

Two things it keeps straight

Several payments are not several invoices. A customer who pays part now and part later against one invoice has made two payments on one invoice. Raising an invoice per payment would count the same money twice. An invoice is raised when the shop asks for a defined portion, never just because someone paid.

The stem is shared. When the office says "1030", they mean the whole job. Every stage keeps that number, so chasing money, answering a customer and reading a report all line up.

Getting paid at each stage

Each stage can be paid by card online, Tap to Pay on the tech's phone, bank transfer, cash or check with a photo, or financing when the shop turns it on. Late-payment reminders get firmer as the debt ages, and a watch list flags slow payers so you can ask for deposits up front next time. More in how to get paid faster and how to collect late payments.

California and deposits

Some states cap deposits on home improvement work. California, for example, limits the down payment on a home improvement contract to 10% or $1,000, whichever is less, and progress payments should not run ahead of the work done. SWITCHBOARD lets you set the deposit and every stage, so you can bill within the rules; see how much deposit to take.

Who uses it

Remodelers and general contractors, roofers billing deposit, materials and completion, electricians waiting on a utility for a service upgrade, and any shop selling big tickets. It syncs invoices and payments with QuickBooks Online. The glossary covers progress billing and retainage.

Sources

• CSLB: What should I look for in a contract (down payment limit) (checked November 11, 2026)