Cash flow is the lifeblood of a construction business. Staying organized with invoice records ensures you bill accurately and get paid on time.
Understanding Invoice Records
Invoice records track the lifecycle of billing on a project, from the initial draw request to final payment, ensuring no money slips through the cracks.
Key Information to Include
- Invoice Number & Date: Essential for tracking and aging.
- Schedule of Values: Breakdown of costs by project phase or trade.
- Amount Due & Retainage: Clear accounting of what is owed and what is held back.
- Payment Status: Draft, Sent, Partially Paid, or Paid.
✨ Benefits of Digital Tracking
- Improves Cash Flow: Organized tracking allows for timely follow-ups on past-due accounts.
- Prevents Underbilling: Ensures every approved change order makes it onto an invoice.
- Simplifies Taxes: Clean records make year-end accounting painless.
Best Practices & Workflow
Always tie invoices directly to completed work or a specific Schedule of Values. Include progress photos with your invoices to expedite client approval and payment.
❓ Frequently Asked Questions
How long should I keep invoice records?
Contractors should retain financial records according to applicable tax, accounting, contractual, and business requirements and consult their CPA or accounting professional for applicable retention periods.
What is a progress invoice?Billing for a percentage of the total project cost based on the percentage of work completed during that billing cycle.
Ready to digitize your Invoice Records?
Join contractors using MyCrewTracker to manage all their documentation in one simple place.
Start Your Free Trial Today