How to use progress invoicing in QuickBooks Online

[0:00] With QuickBooks Online, you can use progress invoicing to send an estimate to a customer and then invoice them over time as you complete the work. Let's go over how to turn on progress invoicing, invoice for part of the estimate... and then to run a report to monitor the progress of all your open estimates. First, make sure progress invoicing is on for your company. Select Settings.

[0:24] Account and Settings. Then select the Sales tab. Progress Invoicing. Toggle on Progress Invoicing. Then Select Save. Before you can record a progress invoice, you must have an open estimate for the customer. Check out this video to learn more about estimates. After you've entered and sent an estimate, it's time to invoice your customer for the work you've completed. Select Create... Invoice.

[0:50] Then enter your customer's name. Open the Manage drawer and select Suggestions and then Suggested Transactions. Here you'll see any open estimates, billable expenses, and time or other items you can invoice your client for. You'll see basic information about the estimate, like the date you issued it and the total dollar amount. Select this if you want to take a closer look at the estimate.

[1:16] To invoice your customer for the estimate, select Add. QuickBooks asks whether you want to invoice for the entire estimate, for a percentage of the work done, or by line item to select specific products and services. Let's select the option to invoice for a percentage of the work done and then invoice for fifty percent. Select Copy to invoice.

[1:39] From the invoice you can see how much you're invoicing now... compared to what you estimated. You can also adjust these amounts on the invoice. When you're finished filling out the invoice, select Save and Close. You can monitor your estimates and what percentage you've invoiced. Select Reports then run the Estimates and Progress Invoicing Summary by Customer Report.

[2:02] From here you see each customer that has an open estimate... the open estimates you've sent them... the amounts on the estimates you sent... versus the amount you've invoiced... And finally, the amount you have left to invoice. Use progress invoicing to invoice your customers for work as you complete it over time.