Finance - Raising a Deposit Invoice and Confirming Payment Before Work Starts

Confirm the deposit percentage agreed at quote stage. Typical ranges: 20-35% construction and AV, 25-50% promotional merchandise, 25-30% renewables and electrical. If not explicitly stated in the quote, agree in writing before raising the invoice.

Create the deposit invoice the same day the quote is accepted. Reference the accepted quote number. Show the full project value, deposit amount now due, remaining balance on completion. State a specific calendar payment due date.

Send the deposit invoice immediately to the billing contact captured at quote stage - not just the project contact. Corporate billing and project contacts are frequently different people, and sending to the wrong person delays payment.

Log the payment due date in the job record. Set a follow-up reminder for 3 days before the due date. If payment has not arrived, call the billing contact directly rather than relying on an automated reminder alone.

Confirm payment received before releasing materials purchase orders, booking sub-contractors, or committing crew dates. Mark the job as authorized to proceed only once the deposit has cleared.

Sync the deposit payment to the accounting system on receipt. Record as a deposit or advance payment - not as revenue - so it can be correctly deducted from the final invoice at job close without a double-count.

Show the full project value on the final invoice, deduct the deposit paid with the original deposit invoice number referenced, and state the balance due. Both invoice numbers allow the customer to reconcile the full payment history in one document.

Work starts before the deposit invoice is sent, meaning the business is funding the job upfront with no written confirmation the customer intends to pay.

The deposit invoice goes to the project contact rather than the billing contact and takes days to reach the right person, delaying payment and the job start.

The deposit is recorded as revenue rather than a liability, causing a double-count on the final invoice and a customer query that holds up final payment.