How to Set Up Progress Payments for Long Projects in QuickBooks

Contractors who bill long jobs in stages often ask us how to mirror that in QuickBooks. A brick staining job that runs several weeks is a good example. You collect a deposit, bill at set milestones, and take a final payment at completion. Here is how to do it cleanly.

Can one invoice cover a whole payment plan?

Not really. A single QuickBooks invoice carries one due date, so it cannot show separate payment deadlines for a deposit, milestones, and a final balance. The workable approach is a series of invoices tied to one estimate or project. Each invoice shows its own amount and due date, and the customer’s running balance stays visible.

Start with an estimate

Create an estimate for the full job value first. Estimates in QuickBooks Online let you track the whole contract in one place. When each stage comes due, you can convert part of that estimate into an invoice. QuickBooks supports progress invoicing, which lets you bill a percentage or a fixed amount and shows what remains unbilled on the job.

To use it, turn on progress invoicing in your sales settings, then create the estimate with your full contract price. When you invoice, choose to bill a percentage, such as your deposit, and repeat the process at each milestone.

How do customers see what they still owe?

Each progress invoice can show the estimate total, what has been billed so far, and the remaining balance. That gives the homeowner the running picture you want without you maintaining a separate tally. The customer’s overall balance also appears on statements if you send them.

Can QuickBooks send payment reminders?

Yes. Automated invoice reminders in QuickBooks Online can notify a customer a few days before an invoice is due. You set the schedule once, and it applies to your open invoices. That covers the “payment due in three days” nudge, though it works per invoice rather than per milestone on a single document.

A practical setup for a staged job

Bill the deposit as the first progress invoice, due before work starts. Invoice the one-third and two-thirds milestones as the job advances. Send the final invoice at completion. Turn on reminders so each due date triggers its own notice. The estimate keeps the contract terms visible, and every payment reduces the unbilled remainder automatically.

If you also take deposits before a contract is signed, a separate estimate or sales receipt for that amount works better than folding it into the job estimate.