oboloo Glossary

Progress Billing Accounting

oboloo Glossary

Progress Billing Accounting

Progress Billing Accounting refers to the invoicing practice of breaking a large project into smaller parts and billing for them as the work progresses. This method of accounting helps businesses manage resources better, since they are able to bill clients for completed work faster instead of having to wait until the entire project is done. It also allows businesses to estimate their cash flows more accurately so they can plan their finances accordingly. On the customer side, it allows customers to pay for individual phases of a project as they come due, instead of being expected to pay the entire cost up front. Progress billing is an effective tool that keeps projects running on time and under budget!