Ever have trouble keeping track of who has paid their deposit, and who had not? Or do you worry you are losing track of which invoices had been sent for the final balance?
This can happen if you’re doing one invoice for the deposit, and then a separate invoice for the final amount.
My favourite, if unconventional solution to this is as follows:
1. Make up a draft invoice with details of the full services and amount that will be owing, as if it’s the final invoice. Include all the detail you want for your client on as many lines as you like.
2. Add an extra line at the bottom with a negative amount for what will be due later, which of course leaves the invoice total as the amount of the deposit. Use the inline calculator to speed up calculations.
3. Email this deposit invoice to your client still as a Draft Invoice. Make it look the same as your normal invoice by either using a custom invoice template, OR, if you NEVER use draft invoices go into your default invoice settings and remove the words “DRAFT INVOICE” from printing.
4. Send a copy of the PDF into your own Xero Filing.
5. Edit the draft invoice you have just sent by deleting the last line with the negative amount – so the invoice shows all the services and total amount due at the end.
6. Also edit the invoice number by adding a “ – 1 “ or something that will be similar but not exactly the same. Eg INV-0031 becomes INV-0031-1
7. Approve it.
8. Attach the saved PDF of the deposit invoice to the full invoice for your own reference.
9. When your client pays their deposit, you will reconcile against the full invoice amount, easily showing the amount paid and outstanding.
10. The final invoice is already there in the system not marked as sent, and can be instantly sent when the deposit is reconciled.