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Project Billing Guide

Mastering Milestone Billing

How to split large contracts into deposit stages and deliverable milestone invoices to protect cash flow and prevent payment disputes.

1Why Milestone Billing Protects Your Business

Billing 100% of a large project at the end creates cash flow risk and delayed payment cycles. With BillPond Milestone Engine, you split project contracts into structured stages:

Stage 1: Deposit (30-50%)

Upfront project kickoff deposit required before development begins.

Stage 2: Midpoint (25-30%)

Billed upon delivery of core design approval or MVP release.

Stage 3: Handover (20-25%)

Final payment settled upon production deployment and IP transfer.

2Creating a Milestone Invoice in BillPond

  1. Click Create Invoice and choose Milestone Billing Engine.
  2. Enter the total project contract value and select your customer.
  3. Add milestones: Define milestone name, deliverable description, due date, and percentage (%) or fixed amount.
  4. BillPond automatically verifies that total milestone percentages sum to 100%.
  5. Dispatch each milestone invoice as deliverables are completed.