Finance - Managing a Project Stage Payment Schedule

Agree the number of milestones, the percentage tied to each, and the specific completion event that triggers each invoice. Confirm in the order confirmation or contract before work begins.

Log each milestone with its trigger event, expected date, and invoice amount against the job. Ensure both your team and the customer have a copy.

Raise and send the deposit invoice the same day the contract is signed. Hold work until the deposit clears unless written credit terms apply.

When a defined milestone event is completed, raise the corresponding stage invoice within one business day. Do not wait for a monthly billing cycle.

Review the job record before raising the final invoice. Record every variation approved in writing as a line item. Unrecorded variations are the most common cause of final payment disputes.

Raise the final invoice on the day the completion event is met. Deduct deposits and previous stage payments as explicit line items. Sync to Xero, QuickBooks, or FreeAgent the same day.

Stage invoices are raised days or weeks after the trigger milestone, giving customers free credit and creating unnecessary cash flow gaps between project completion and payment receipt.

The final invoice arrives as a surprise to the customer because the stage schedule was not written into the original contract, leading to disputes that delay the last and largest payment.

Approved variations completed during the project are not captured before the final invoice is raised, so they either appear as unexpected additions or are written off entirely.