How to invoice for a deposit (upfront payment)
Deposits protect your time and cover materials before a job starts. Here's how to bill one cleanly — and how to credit it on the final invoice so nobody gets confused.
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When to ask for a deposit
- You're buying materials up front — the deposit should at least cover them
- The job blocks out significant time on your calendar
- New clients with no payment history
- Custom or non-refundable work (designs, fabrication, event dates)
Common practice is 25–50% of the quoted total. Whatever you choose, put it in the quote or estimate before the client agrees — a deposit should never be a surprise.
How to write the deposit invoice
- Create a normal invoice with its own number (e.g., INV-1042-1).
- Add one line item: "Deposit — 50% of quoted total, kitchen remodel per estimate EST-1042".
- Set the due date to "due on receipt" — work starts once it's paid.
- In the notes, state what the deposit covers and your refund terms if the job cancels.
How to credit it on the final invoice
On the final invoice (INV-1042-2), list the full job as normal line items, then add a negative line: "Less deposit paid — INV-1042-1: −$500". The total due then shows only the remaining balance. Referencing the deposit invoice's number keeps both documents tied together for your records and the client's bookkeeper.
Three mistakes to avoid
- No paper trail — taking a deposit by text/handshake with no invoice makes disputes messy.
- Forgetting to credit it — a final invoice for the full amount looks like double-billing and stalls payment.
- Vague scope — say what the deposit is for and reference the estimate, so scope changes are billed separately.
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