Business bookkeepers and payment processors need progress billing education and training to make their job more efficient. Progress billing is a technological application that helps businesses organize bill invoices into installments for clients. Many customers prefer to pay large-cost jobs in payments rather than one lump sum. Progress billing education and training is practical for the smallest to largest business types for keeping track of the payments made toward a job.

Your staff can obtain progress billing training in several different ways. Seminars, tutorials, and manuals all provide an education in progress billing for companies. When thinking about increasing a business accounting department’s progress billing education and training, consider the following options:

1. Enroll in a progress billing training course.

2. Complete a tutorial for progress billing software.

3. Study articles offering information about progress billing accounting.

Action Steps
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Enroll in a course that explains the progress billing format for invoices

Short courses and seminars are great ways to learn basics of progress billing software applications. Most courses offer hands-on training and allow students to complete trial invoices with a progress billing sample. These courses are perfect for those who work in progress accounting and billing departments.

I recommend: Apex offers a three-day Microsoft Dynamics course that includes teaching students about progress billing accounting. Sage Software University offers several business management courses. One such course is devoted to how to manage progress billing.

Complete an online progress billing software tutorial

Online software tutorials give viewers step-by-step information about using progress billing software. Learn to create a progress invoice for a job. Most tutorials give visual demonstrations of how the software works and allow hands-on operations. Be certain to complete a tutorial that pertains to the same type of software used in the business accounting department.

I recommend: Clients and Profits X offer an online tutorial to teach progress billing for accounting employees. The tutorial is divided into lessons. Hyper Teach gives a short introduction into what is progress billing and offers an online video.

Gain progress billing education and training through professional articles

Articles offer tips, suggestions, and insights into specific and general aspects of progress billing. Many articles also list dates of events, courses, and seminars pertaining to progress billing for accounting. Some articles focus on using progress billing in a particular industry such as for medical or construction jobs.

I recommend: Housing Zones features an article that demonstrates and discusses how to calculate the percentage of completion for progress billing. In an article on Directory M, various businesses discuss how they use progress billing to keep their clients happy. Read over the different business progress billing practices and use ideas that you like for your own company.

What is progress billing? Progress billing can be used for any long term project in which there is more than one contractor or business involved. It is a common billing system in defense and aerospace projects, and is becoming more popular in construction projects.

Progress billing accounting allows companies to invoice costs as incurred on a twice a month or monthly basis. This reduces the need for working capital as the customer is actually financing the project's inventory.

Progress billing accounting can be set up around the progress or completion of:

1. Progress billing on categories of work within the project
2. Progress billing within different locations or phases
3. Progress billing on specific items of work

Action Steps
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Find information on the progress billing format

When considering if the progress billing form of accounting would be beneficial to your company, search websites that provide information on progress billing accounting.

I recommend: Containing information on the basics of the progress billing format and setup, Goldenseal Reference Manual has all the information on construction progress billing. To see an explanation of the benefits of progress billing accounting, check out the Made2Manage website. WikiCFO provides information on how accounting with progress billing works for a construction project.

Purchase progress billing software to set up a system for your company

Once you have decided that progress billing is a viable option for your company, research the different software products available to find the right one for you.

I recommend: Providing a free demo, 2020software.com offers progress billing software. Saprro Systems offers progress billing software called PAYMEE, which stands for payment application made easy for excel. Sage Software, through their Peachtree software line, has a number of options for accounting with progress billing.

Examine a progress billing sample

Since progress billing in accounting is only applicable to certain types of companies that specialize in long term projects, there are currently not a wide variety of samples to view. As companies become more familiar with the progress billing format and its benefits, more samples should become available.

I recommend: Oracle provides a progress billing sample, as well as information about the progress billing format in a pdf file article about progress accounting in an aerospace program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Check out discussion forums, such as the one for Quick Books, to see what people that are currently using progress billing for accounting are saying.
• •  If your industry works on projects that would benefit from progress accounting, trade magazines and journals may provide articles or information.

What is progress billing? It's the type of payment used for projects that are done in phases. For each phase of the work completed on the project, progress billing is used to make the payments. The payments can be paid based on three different milestones of the project: categories of work completed within the project, progress made in different locations or phases of the project and progress on specific items of the work.

There are different ways to set up progress billing format. You'll want to research different progress billing advice and ratings to find the format that will work best for you. When conducting this research, you'll want to see advice and ratings on the following.

1. Find advice and ratings on a progress billing sample.

2. Find advice and ratings on progress billing software.

3. Find advice and ratings on progress invoicing.

Action Steps
The best contacts and resources to help you get it done

Research advice and ratings on a progress billing sample

Once you've decided to use progress billing for your multiple-phase projects, you'll want to get an idea of how to set it up and use it properly, so you can make sure you're keeping track of all of the payments. The best way to do this is by looking at samples of progress billing, and then creating your own. You can find different samples on the Internet that will also show you how to set up the billing record.

I recommend: Read reviews of Goldenseal Reference Manual, which helps you set up progress billing. Paymee offers various samples of progress billing sheets.

Research advice and ratings on progress billing software

You can do your accounting with progress billing easier by using progress billing software. The software will allow you to divide the bill into separate payments while keeping track of the entire process, report the payments, invoice the payments, choose when to bill customers during the project, and show what items on a sales order require progress billing. Before purchasing this software, you'll want to research advice and ratings on different types of progress billing software.

I recommend: Made2Manage offers progress billing software that provides many different features. Read ratings on Alert software by Fieldpoint, which allows you to break down your project into multiple levels.

Research advice and ratings on progress invoicing

When doing progress billing accounting, you'll want to make sure you invoice each stage of the project properly. To find the best way to do this, you'll want to research advice and ratings on different progress invoicing tools. By using a progress invoice, you'll make sure that the payments for each step of the project have been completed, so when the project is done, you have proof that all of the payments were made.

I recommend: Microsoft Office Online provides a free progressional billing invoice download. Read ratings on Invoice Organizer Pro, which allows you to manage and process different invoices.

Progress billing is a simple solution to long term jobs and projects. The billing concept works on the principle of invoicing in partial billing amounts based on work or time the project takes. The billing option works well for companies that need the income while the project is ongoing.

To understand progress billing and find out how it can benefit your company, you'll need to understand a few basic terms. Learn the ropes and compare progress billing as an option for your company.

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Retainage

Retainage refers to the sum of money held until the job or project is completed. The payer agrees to make finale payment, of the retainage amount, once the work is done.

I recommend: Read the definition of retainage at GoldenSeal Reference Manual. The software manufacturer explains progress billing and other billing options in depth.

Earned and unearned

Earned and unearned are both terms used to describe the way income is produced. Earned income is simply money someone works to obtain, while unearned income is the opposite. It is money someone receives from investments such as stocks, bonds, interest income and rental income.

I recommend: Read the definitions of both earned and unearned income at Investorwords.com. The dictionary of financial terms includes descriptions of both.

Schedule of values

The schedule of values is a listing of work details with assigned monetary amounts. Progress billing breaks projects into sections and gives them each value amounts. These amounts are kept in a list, or schedule of values.

I recommend: The WikiCFO gives the definition of schedule of values and explains how the listing is used with progress billing.

Progress payment

A progress payment is a monetary compensation made based on a specific milestone during a job period. The amount can be based on progress of the work or a specific time period.

I recommend: Wideman Education Foundation defines progress payment in their explanation of progress billing.

Partial billing

Partial billing is a simple invoice made during the course of a project or job. The bill is usually for an estimated amount found on the schedule of values.

I recommend: Get the definition of partial billing at QuickBooks.

Revenue recognition

Revenue recognition is explained as the idea that revenue is acknowledged through the completion of work that results in payment. It is one of the four main principles of accounting which also includes cost, matching principle and disclosure.

I recommend: Tenrox gives an indepth explanation of revenue recognition. The organization provides a wide scope of human resource solutions.