Define milestones in writing
Each milestone should name the deliverable, approval criteria, and payment amount. Tie invoices to signed approvals so clients know what they are paying for at each stage.
- Name deliverable and approval criteria
- Tie payment to signed approval
- Reference master agreement
Write line items clients understand
Use milestone names finance teams recognize — Discovery complete, Design approval, Beta launch — not vague labels like Phase 2. Include dates and reference the master agreement if helpful.
- Avoid vague Phase 2 labels
- Include dates where helpful
- Match estimate line items
Track what was already paid
On later milestones, show deposits or prior payments and the remaining contract value. This reduces disputes when the final invoice arrives.
- Show deposits and prior payments
- Display remaining contract value
- Reduces final invoice disputes
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Invoice Generator · Estimate Generator · Milestone invoice template
Requirements vary by country and business type. This guide explains common billing workflows and is not tax, legal, or accounting advice.