Interim Invoice in New Zealand
An interim invoice is a request for payment that is sent to the customer before the completion of the project. This payment request which is via the interim invoice is limited to the extent of the work completed.
One main reason for an interim invoice is that some projects may take much time to complete. So it is not financially feasible for the business to wait until the end of the project to send an invoice for payment. It makes business sense to send invoices from time to time in line with the project’s progress. These types of invoices are usually sent after regular intervals such as weekly, monthly, quarterly and so forth. There can be any frequency depending on the mutual understanding between the buyer and seller’s business.
Tips for Making an Interim Invoice
The following tips can be effective in making interim invoices:
A clear description of the work completed
It is essential to communicate the progress or extent of the work done with itemized details. Take the example of a general contractor that is building a house for a client. In this case, it is prudent to mention on the invoice if you are billing them for demolition, framing, steel, concrete or other construction items. This will then enable the client to understand what items they are paying for.
Show movement of the balance
It is a good idea to show the schedule of the balance movement. For example, there can be details such as the total budget, previously billed balance, current invoice and remaining balance. This communicates a clear picture as it helps to understand the project’s progress.
Communicate changes and modifications in the project
Any change that is made in the project’s scope should be communicated in the invoice. For instance, any change order should be added and shown right after the budget in the invoice.
Keep itemized records for the invoices sent to date
It is a good idea to maintain itemized master sheets for the items billed to date as it helps to trace detailed project progress.
Interim Invoice Email Notification Template
Hello {Name of the client},
Please see the attached interim invoice for {Project name}. As part of our billing process, this invoice intends to request payment for the work completed.
Payment Options:
{Details related to payment options}
Please make sure to pay the invoice before the due date. If you have already paid the invoice, kindly accept our sincere thanks. Further, if you have any questions or queries, kindly contact us at {Phone / Email}.
Thank you for choosing us as your business partner, and we wish you continued success.
Best regards,
{Your name}
{Your title in the company}
{Your company name}
How to Create an Interim Invoice
Method 1: Use our simple invoice software
Method 2: Download a free interim invoice template:
Invoicing tools for New Zealand: