Interim invoices are a specialised type of invoice used for long projects. How exactly do these invoices differ from recurring invoices, and what benefit is there to using them?
What is it and how does it differ from recurring invoices?
An interim invoice can be used to pay for segments of work as they are completed.
They are used for long projects, while recurring invoices are used for separate, repeated projects. Though interim invoices could be used in the same way, it would only be applicable if the overall project encompassed the smaller work. An example may be a project to improve overall SEO: a trader could be paid per blog, based on a set plan and scope.
What are the benefits?
Cash flow
Interim invoices are helpful when a project is too long to sustain without payment in between. The only other option, if this is the case, is to take on more work, or give up the project entirely.
Project scope
Because payments are split up into different parts, the project scope has to be accurate in order to make them. This means that sole traders can accurately complete their work according to the scope, and clients won’t feel cheated when paying for different stages.
Who might use interim invoices?
Interim invoices are helpful for jobs where a trader’s expertise might be used over an extended period. Some examples are as follows:
- SEO experts
- Coders of various kinds
- Helpdesk professionals
- Lead generation specialists
- Construction workers
This list isn’t all-inclusive, but the sole trader professions listed are prominent examples of those who might use interim invoices. Their jobs could be split into multiple, specific parts; or, the work they perform is extended – possibly even both.
If you’ve thought about picking up one of these professions, and don’t know if it would fit, read our blog here for help in starting a sole trader business.