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:
- Progress billing on categories of work within the project
- Progress billing within different locations or phases
- Progress billing on specific items of work
Find information on the progress billing formatWhen considering if the progress billing form of accounting would be beneficial to your company, search websites that provide information on progress billing accounting.
Purchase progress billing software to set up a system for your companyOnce 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.
Examine a progress billing sampleSince 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.
- 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.