An FYI progress invoice is a billing document issued by the accounting software FYI (formerly FYI Docs) that requests payment for a portion of a larger project or contract, based on work completed to date. It is not a separate invoice type, but rather a standard progress invoice created and managed within the FYI platform, which is widely used by accounting and professional services firms.
What Is a Progress Invoice?
A progress invoice is a bill for a partial payment on a long-term project. Instead of invoicing the full amount at the end, you invoice at milestones—e.g., 25% upon signing, 50% at project midpoint, and 25% upon completion. This helps your cash flow and reduces the risk of non-payment for large jobs.
Progress invoices are common in construction, consulting, software development, and any industry where work spans weeks or months. Each invoice typically references the total contract value, the percentage completed, and the amount now due.
How FYI Handles Progress Invoices
FYI is a practice management and document automation tool designed for accounting firms. It integrates with accounting platforms like Xero, QuickBooks, and MYOB. To create a progress invoice in FYI, you generally:
- Set up a client and a matter or job in FYI.
- Link the matter to your accounting software.
- Use FYI’s invoice templates to generate a draft invoice.
- Adjust the amount to reflect the current progress percentage.
- Send the invoice for approval, then email it to the client.
FYI does not automatically calculate progress percentages—you enter the amount or percentage manually. The platform’s strength is in workflow automation: you can route the invoice for approval, store it with the client’s documents, and track when it’s been sent and paid.
Key Features of FYI for Progress Billing
- Document management: All invoices are stored in the client’s file, along with contracts, timesheets, and correspondence.
- Approval workflows: You can set up rules so invoices above a certain amount require manager sign-off.
- Template library: Create reusable invoice templates with your firm’s branding and standard terms.
- Integration: Sync with Xero, QuickBooks, or MYOB to push the invoice directly into your accounting system.
- Client portal: Clients can view and pay invoices online, if you enable the portal.
How to Create a Progress Invoice in FYI (Step-by-Step)
- Log in to FYI and open the client’s matter.
- Go to the “Invoices” tab and click “New Invoice.”
- Select a template (e.g., “Progress Invoice – 50%”).
- Enter the invoice date, due date, and the amount due for this progress payment.
- Add a note referencing the project and the progress milestone (e.g., “Invoice #2 of 3 – 50% complete”).
- Submit for approval if your workflow requires it.
- Once approved, send the invoice via email or the client portal.
FYI will sync the invoice to your linked accounting software, where you can record payment when it arrives.
Progress Invoice vs. Standard Invoice
A standard invoice bills the full amount for a completed job or a one-time sale. A progress invoice bills only for the portion of work completed so far. Here’s a quick comparison:
- Standard invoice: One invoice for the total amount, usually after work is done.
- Progress invoice: Multiple invoices over the project duration, each for a percentage of the total.
- Milestone invoice: A progress invoice tied to specific deliverables (e.g., “when the foundation is poured”).
Progress invoicing is not the same as recurring invoicing (same amount every month) or a deposit invoice (payment before work starts).
Common Problems and Misconceptions
One common mistake is confusing “FYI” with the phrase “for your information.” In this context, FYI is a specific software product. Another issue: users sometimes expect FYI to auto-calculate progress based on time tracked. It does not—you must enter the amount manually. Also, if you send a progress invoice without a clear contract, clients may push back, so always reference the original agreement and the percentage completed.
Another misconception is that progress invoices are only for construction. In reality, any service provider—lawyers, consultants, software developers—can use them. Just be sure your contract allows progress billing.
Costs and Alternatives
FYI is not free. Pricing depends on the number of users and features, and is typically quoted per user per month. It is often used by accounting firms that already have Xero or QuickBooks. Alternatives include:
- FreshBooks: Has built-in progress invoicing for projects.
- QuickBooks: Can create progress invoices manually.
- Harvest: Tracks time and lets you invoice a percentage of a budget.
- Simple spreadsheets: For very small firms, a template might suffice.
If you are not an accounting firm, FYI may be overkill—consider a simpler tool.
Progress Invoice Template
Below is a generic progress invoice template you can use in any word processor or spreadsheet. It includes the key fields a client expects.
| Field | Value |
|---|---|
| Invoice # | ________ |
| Date | ________ |
| Client Name | ________ |
| Project Name | ________ |
| Total Contract Amount | $________ |
| Progress Percentage | ____% |
| Amount Due This Invoice | $________ |
| Previous Payments | $________ |
| Balance Remaining | $________ |
| Due Date | ________ |
Sample (fictional): Invoice #1042, Jan 15, 2025, Client: ABC Construction, Project: Office Build, Total $50,000, Progress 50%, Amount Due $25,000, Previous Payments $0, Balance Remaining $25,000, Due Feb 14, 2025.
Frequently Asked Questions
Can FYI automatically generate progress invoices?
No, FYI does not automatically generate progress invoices based on time or milestones. You create them manually, but you can use templates and approval workflows to speed up the process.
Is a progress invoice a legal document?
Yes, it is a legal request for payment. It should include the contract reference, the amount due, and the payment terms. If the client disputes it, the invoice is evidence of what was billed.
How do I record a progress payment in FYI?
When the client pays, the payment is recorded in your linked accounting software (e.g., Xero). FYI will show the invoice as paid once the sync happens.
What if my client refuses to pay a progress invoice?
First, review your contract to ensure the milestone was met. Then send a reminder and follow up. If the dispute continues, you may need to pause work or seek legal advice—this is where a clear contract is essential.
Can I send a progress invoice for a fixed-fee project?
Yes, if your contract allows it. Many fixed-fee projects are billed in installments based on progress. Just make sure the client agreed to the schedule upfront.
Final Thoughts
FYI progress invoices are a practical way to manage cash flow on long projects. The software handles the workflow, but the billing logic is yours. Always define progress milestones in your contract, and use a clear template to avoid confusion. If you are not already using FYI, consider whether its features justify the cost for your firm.