How do interior designers charge? Learn to streamline your invoicing process by requesting a 50% deposit on proposals and invoice individual items for the remaining balance as they are shipped. This workflow is ideal for handling large proposals and managing client payments efficiently.
Step-by-Step Workflow for Deposit and Balance Invoicing
1. Create a Proposal with Multiple Items:
In DesignerLogic, start by creating a comprehensive proposal with all the items your client has requested. On this proposal, request a 50% deposit. You can split it into multiple proposals, but for simplicity, we’ll use one large proposal in this example.
2. Send the client the proposal or publish it:
DesignerLogic creates beautiful proposals that can be sent as pdf or published to the Client Portal, where the client can log in to view and approve proposals and individual items.
3. Optional: Export Proposal to QuickBooks or Xero:
You have the option to export the proposal to accounting software like QuickBooks or Xero. However, this step is optional. The most important aspect is to export the invoices, not the proposal.
4. Log the Client’s 50% Deposit Payment:
Once the client makes the 50% deposit payment, record it in DesignerLogic as a retainer / deposit. Be sure to log the payment in QuickBooks or Xero to the appropriate customer account.
5. No Invoices Yet!
At this stage, do not create any invoices. Invoices should only be generated as individual items from the proposal are shipped and the remaining 50% balance is due.
6. Create Invoices as Items Ship:
When items from the proposal begin shipping, create separate invoices in DesignerLogic for each batch of items. Since items may ship at different times, you will have multiple invoices.
7. Apply the Retainer to Each Invoice:
For each invoice in DesignerLogic, apply the original 50% deposit as a payment toward that specific invoice. This will leave a balance of 50% still due on each invoice.
8. Send the Invoice to the Client:
Send the invoice to the client directly from DesignerLogic or publish it to the Client Portal. DesignerLogic is the preferred way to present an invoice to a client: it has many options to show or hide data, including images and specs. DesignerLogic also offers the option to include a payment link on an invoice (via Stripe, QuickBooks, PayPal, etc.) so your client can pay the invoice online with ease.
9. Export Invoices to QuickBooks:
After sending the invoice from DesignerLogic, export it to QuickBooks. Apply the initial retainer recorded in QuickBooks to that invoice. This ensures the invoice in QuickBooks mirrors the 50% balance due, just like in DesignerLogic.
10. Optional: Send the QuickBooks Invoice to the Client:
If you have QuickBooks set up for online payments, you can send the QuickBooks invoice to the client as well. This step is optional but can provide another layer of convenience for your customer.
11. Log Final Payments for Each Invoice:
When the client makes the final payment on an invoice, record it both in QuickBooks and DesignerLogic. This will mark the specific items on that invoice as paid in full, with 50% coming from the original deposit.
Repeat for Each Shipped Item
Continue this process for each batch of shipped items by generating new invoices and applying the 50% deposit as needed until all items have been shipped and paid in full.
By following this streamlined deposit and invoicing workflow, you can use DesignerLogic to effectively manage large proposals, ensure smooth payment collection, and maintain accurate financial records in dedicated accounting programs like QuickBooks and Xero.
DesignerLogic has individual video tutorials for how to create proposals and invoices, set up and publish to the Client Portal, and exporting transactions to Quickbooks and Xero. These videos can be accessed directly within DesignerLogic, as you work on the applicable pages.
