Mastering Progress Invoicing in QuickBooks: A Step-by-Step Guide
In the world of accounting and finance, efficiency and organization are paramount. QuickBooks, the renowned financial software, offers a powerful feature known as progress invoicing, allowing you to seamlessly send invoices over time while working off an estimate. This feature proves invaluable for businesses that prefer to bill clients in installments rather than demanding full payment upfront. In this blog, we'll walk you through the process of mastering progress invoicing in QuickBooks, enhancing your invoicing efficiency and providing flexibility to your clients.
Step 1: Activate Progress Invoicing
Before you can dive into progress invoicing, you need to enable it in your QuickBooks settings. Here's how:
- Click on Settings ⚙️, then select Account and settings.
- Navigate to the Sales tab.
- Within the Progress Invoicing section, click on Edit ✎.
- Turn on the "Create multiple partial invoices from a single estimate" switch.
- When prompted to update your invoice template, select Update.
- Complete the process by clicking Save, followed by Done.
With progress invoicing activated, you're now equipped to create multiple invoices from your estimates.
Step 2: Create a Progress Invoice Template
QuickBooks simplifies the process by offering a default progress invoicing template, known as "Airy new style." To make the most of this template for your progress invoices, follow these steps:
- Visit Settings ⚙️ and select Custom form styles.
- Opt for New style, then Invoice, to either create a new template or edit an existing one.
- Provide a distinct name for your template, such as "Progress invoice template."
- In the Design tab, select "Airy new" as this template is tailored for progress invoices.
- Customize other settings to align with your preferences.
If you frequently use progress invoices, consider setting this template as your default choice for added convenience.
Step 3: Create an Estimate
To initiate the progress invoicing process, you'll need an initial estimate. Here's how to create one:
- Click on + New, then select Estimate.
- Identify the customer and complete the estimate with all the necessary details.
- Ensure you save your estimate.
Step 4: Create Progress Invoices from the Estimate
Creating progress invoices is a straightforward process with QuickBooks. You have a couple of options:
- Head to Sales, then All sales. Locate the estimate and select "Create invoice" from the Actions column.
- Alternatively, when generating a new invoice, choose your customer. QuickBooks will prompt you to add the estimate to the invoice.
- Specify the amount you intend to invoice and proceed to complete the invoice as required.
Step 5: Stay Organized
To maintain a high level of organization and effectively track your progress invoices, consider these strategies:
- Review the original estimate, where all linked progress invoices are conveniently displayed.
- Scrutinize progress invoices, which include an estimate summary and convenient links to the original estimate and other related progress invoices.
- If you utilize projects within QuickBooks, you can seamlessly manage estimates within your projects.
- Harness the power of reports, such as the "Estimates & Progress Invoicing Summary by Customer" report, to gain a comprehensive overview of your estimates and progress invoices.
By mastering progress invoicing in QuickBooks, you're not only streamlining your invoicing process but also providing your clients with the flexibility they may appreciate. Additionally, you're maintaining organized financial records throughout your projects, a crucial element of efficient financial management.
Progress invoicing is just one of the many powerful features QuickBooks offers to help businesses excel in their financial endeavors. So, whether you're a small business owner, a freelance professional, or part of a larger organization, harness the power of progress invoicing to streamline your invoicing process and keep your financial records in tip-top shape.