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Invoicing

Hi-- Is anyone willing to share the verbiage you use on invoices if you're advance billing based on estimate? Any input is greatly appreciated. Thanks. --

Susan Preston Davis Agency

Susan,
We put ADVANCE BILLING in the invoice description field. The invoice, of course, already reflects the job number. Then, on the Advance Billing line item, we show it this way: Advance Billing - 50% (or whatever) of approved estimate. You can attach a copy of the estimate if you think it's necessary. We don't.

Valerie Sexton Buzzsaw Advertising & Design

We use: "Advance Billing -- one half of the estimate for (description of project/job)." The second (or last) billing would say "Balance of the estimate for (description of project/job)."

Over the years we have used several different approaches, but found this to be the most straight forward. Another way to put it was "Prebilling of one half ...etc. We came to the conclusion that there was no sense dancing around the word "Advance".

Have a great day!

Marianne Pickard

Pretty simple here:
PROGRESS BILLING BASED ON APPROVED ESTIMATE

Cathy Brownlee

When I advance bill based on an estimate - I insert "Progress Billing #1" into the project name on the invoice, then in description put "1/3 of Creative & Management Costs" - or whatever it is. I typically only progress bill on Creative and Management costs as the printing and other out-of-pocket costs can change up until the end. My "Final Progress Billing" includes out-of-pocket, unless it is an expense that has already been incurred.

I also include a statement with the invoice so they can see what's been paid and what remains based on the approved estimate.

It's not very scientific, but hope that helps!

Best,

Ellen
Cregan Design

We never use the estimate bill feature in Classic because clients won't get a final bill with accurate line item totals, and we don't recognize advance billing as income until a job is complete.

Instead, we use a task called "Advance Billing" and send an initial invoice with this invoice description:

XX% advance billing based on approved estimate.

When we final bill the job, we change the Advance Billing task to read:

Credit for advance payments received

The client sees each task on the final invoice with their total billing amount which makes it easy to compare to the estimate. Obviously, you'd need to ensure that the advance payment has been received.

Also, because you'll end up with only a net amount due on the final invoice (job total - advance payments = final balance due), we typically add a note in the description for the client's reference:

Final Job Cost: $XXX.00

Alex Eisenberg
Managing Director

We do not include any verbiage on our invoice regarding estimates, instead it is icluded on the Job Authorization, so that when they sign off they are acknowledging that although the first invoice might reflect 50% of the Estimate, the final bill will not always reflect 50% but rather the balance of the estimate due plus 10%. Following is the verbiage included on our Job Authorization (Estimate):

This estimate is plus or minus 10%. The above is based on the specifications outlined. Any additions, alterations, etc., will be billed accordingly. This estimate includes 2 rounds of revisions, and any revisions or additions beyond that will require a change order for an additional amount. This estimate includes approximate shipping and sales tax and shall remain in effect 30 days from the date hereof.

Thanks,

Jennifer Savino
The Denmark Group, Inc.

Our usual practice is to indicate on the estimate that a portion of the project will be invoiced at the initiation of the assignment. This ranges from 25% to 50%. And is usually defined as project planning and creative development.

On the advance billing we reference the approved estimate, and note the invoice as a 1 of 2, 3, 4, etc. Depending upon a project payment schedule (if the project spans more than 30 days.)

If you set the expectation within the proposal, the invoice description will be easy. Break you proposal into phases, and describe each phase. This makes it simple to invoice for phase I at the start of the project.

Hope this helps.

David Rogers
Pivot+Levy