Are you billing fixed fee projects on a milestone basis? In other words, do you agree upon a fixed amount for the project, and then bill a portion of that amount at set times? A common milestone schedule is to bill 1/3 up front, 1/3 in the middle, and 1/3 at the end. This video describes how to do that. Scroll down below the video to learn more.
Three ways to bill clients by milestone
Invoicing milestones can be configured three ways. By date range, by percentage of total, or by fixed amount of total. Any number of milestones can be assigned to a project. But milestone belong to only one project. They are not shared by multiple projects. So when you create a new milestone for a project, it stays with that project alone.
Choose Tools, Projects to open the projects dialog. Look for the 'Milestone' field in the Billing section of the properties.
Milestone: Time and expenses by date
Choose time and expenses by date to invoice the client for a date range. All the time and materials that were created in this date range will be included on the invoice. The subtotal will be the exact amount for those records.
Milestone: Percentage of project
Choose percentage of project to set the invoice subtotal to a portion of the total fixed fee. The total project estimated cost will be multiplied by this percentage to arrive at the subtotal in the invoice. You can still set the date range for displaying time and materials in the invoice, but the subtotal will be set using this formula.
Milestone: Fixed amount
Choose fixed amount to enter a dollar amount used for the invoice subtotal. A date range can still specify which time and materials show up on the invoice. But the subtotal will use this fixed amount.
Other milestone settings
Each milestone can also have a purchase order, date, and customer acceptance signatures. After the customer accepts, you can countersign to show that you have verified their acceptance.