This task is one section of Small business workflows for 20 industries, with 19 related tasks on one page.
1. What to record
Record the agreed milestones, the time spent, the acceptance, and the invoice for that accepted stage.
This is a project and billing record. It does not set tax, a contract term, or whether unused time can be billed later.
2. People and records
On small screens, scroll the table sideways to see every column.
| Record | Who uses it | What to keep |
|---|---|---|
| Milestone | Project lead | Name, agreed amount, and what must be delivered. |
| Time | Consultant | Person, date, hours, and the milestone the work belongs to. |
| Acceptance | Client owner | What was accepted, the date, and who accepted it. |
| Invoice | Accounts | Milestone billed, amount, and what is still unbilled. |
3. One complete cycle
- Agree three milestones of 400 each. The engagement total is 1,200.
- Log time against the first milestone. The time record does not create an invoice.
- Send the deliverable and wait for written acceptance.
- Invoice 400 for the accepted milestone and leave 800 unbilled.
Expected: One invoice of 400 matches the accepted milestone. Logged hours stay on the project. The other two milestones remain unbilled until they are accepted.
4. Check before you add tools
Before you send an invoice, point it at an acceptance. Hours without acceptance are a cost to review, not a bill.
If the client rejects the deliverable, keep the milestone open. Do not invoice it and then credit the whole amount as a way to show the rejection.
5. Frequently asked questions
Do timesheets become the invoice?
Not in this case. The invoice follows the accepted milestone amount. Timesheets explain the effort spent.
Can you invoice a deposit before any milestone?
Only if the agreement says so, and record it as a deposit rather than as acceptance of work that is not done.
What if acceptance covers only part of a milestone?
Bill the accepted part only if the agreement allows a split. Otherwise leave the milestone open until the agreed deliverable is accepted.
6. Related articles and next steps
Sample amounts and names in this guide are illustrative. They are not a client result, a price, or legal advice.
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