Boost Your Cash Flow: How Progress Invoicing in QuickBooks Online Keeps Money Flowing
Worried about cash flow in uncertain times? Having clear, up-to-date financials is one of the most important ways to stay in control.
Let’s be honest—cash flow anxiety is real, especially when economic uncertainty makes the future feel unpredictable. You're not alone in wondering whether you'll have enough coming in to cover what's going out, not just this month, but three or six months down the road.
While we can’t predict the future, we can help you create greater consistency and visibility into how cash moves through your business—and that starts with clear, up-to-date financials. One practical way to do that is by using a powerful QuickBooks Online feature: progress invoicing. This tool allows you to bill clients in stages throughout a project, rather than waiting until everything is complete, helping shift your payment schedule from unpredictable to steady and manageable.
Why Progress Invoicing is a Cash Flow Game-Changer
Progress invoicing allows you to break down large projects into smaller, billable milestones. Instead of completing a $10,000 project and waiting 30 days for payment, you can invoice $2,500 at project start, another $2,500 at the halfway point, and so on.
Your clients benefit from more manageable payments, and you gain more consistent cash flow throughout the project lifecycle. More importantly, it gives you better visibility into what’s coming in and when—something that becomes critical as your business grows.
Setting Up Progress Invoicing in QuickBooks Online
Step 1: Enable Progress Invoicing
Click the gear icon in the upper right corner
Select “Account and settings” under “YOUR COMPANY”
Click “Sales” in the left menu
Scroll to “Progress Invoicing”
Toggle this option to “On”
Click “Done”
Step 2: Create Your Progress Invoice Template
Click the gear icon and select “Custom form styles”
Click “New style” → choose “Invoice”
Rename the template (e.g., “Progress Invoice”) to avoid overwriting your default
Customize your design:
Add your logo
Adjust colors
Modify fields under the “Content” tab
Review email messaging
Preview and save
Creating Your First Progress Invoice
Find your estimate
Click “Convert to invoice”
Choose one of three options:
Option 1: Remaining total
Use when billing everything left
Option 2: Percentage or amount
Ideal for milestone billing
Option 3: Manual per line
Gives full control
For most projects, percentage-based billing works well (e.g., 25% upfront, 50% midpoint, 25% completion).
This keeps payments consistent and ensures both you and your client understand what has been billed and what remains.
Tracking Your Progress Invoices
Use the “Estimates & Progress Invoicing Summary by Customer” report to monitor project status and outstanding payments.
This level of visibility becomes especially important as you begin relying on projected cash flow to make decisions.
Additional Cash Flow Strategies
Progress invoicing works best when paired with a structured approach to receivables:
Early payment discounts
Shorter payment terms
Immediate invoicing
Late fees
Consistent follow-up
Each of these helps reinforce predictable cash flow and reduces the risk of gaps between income and expenses.
The Bigger Picture
Progress invoicing is a helpful tool—but it’s only one piece of the equation.
Consistent cash flow ultimately comes from having financials that are accurate, up to date, and structured to give you visibility into what’s happening in your business.