Track contract value, billed amounts and cash received as three separate numbers. They answer different questions. A signed job is not collected cash, and an unpaid invoice is not the same as work that has not yet been billed.
Start with the signed agreement and approved changes. Record each invoice against the correct project, then attach payment dates and amounts to the appropriate invoice. Keep any retainage or disputed amount visible rather than silently subtracting it from the original bill.
A fictional progress-billing example
A project's original contract is $20,000. There are no approved changes and no retainage in this example. The contractor issues a $5,000 invoice and receives a $3,000 payment.
- Current contract value: $20,000.
- Billed to date: $5,000.
- Collected to date: $3,000.
- Outstanding on issued invoices: $2,000.
- Contract value not yet billed: $15,000.
The final number is not automatically due today. Billing rights and timing depend on the agreement and applicable requirements. Calling the full $17,000 difference between contract value and collections “overdue” would misstate the record.
Review cash needed before the next draw
List the supplier and trade payments expected before the next client receipt. Distinguish confirmed dates from assumptions. If $4,500 of payments will fall due and only $3,000 is currently available for that job, the planning gap is $1,500. That does not justify changing payment terms without agreement; it tells you which timing issue needs attention.
Keep expenses, profit estimates and cash balances distinct. A profitable project can still have a cash timing problem. Reconcile the tracker with actual bank and bookkeeping records rather than treating an entered payment as proof that funds cleared.
Connect the final invoice to the handoff
Create a punch list with a specific description, location, responsible party and target date for each unfinished item. “Finish bathroom” is difficult to verify. “Install missing vanity handle and confirm door operation” is an item someone can complete and review.
Gather applicable inspection records, product manuals, warranty information, keys or access instructions and agreed handover documents. Record open items and their status accurately. A signature line in a digital planner is not a substitute for the agreement or any required legal documentation.
Keep service requests visible after completion
When a client reports a problem, log the date, description, appointment, responsible party and outcome. Check the actual warranty terms before classifying work as covered or chargeable. Recording a request as a warranty item does not establish coverage by itself.
A useful closeout record lets someone find what was completed, what remains and whom to contact. It also keeps a later service issue from being lost inside an old invoice note.
What should the weekly billing review include?
Review unissued invoices, issued balances, expected receipts, credits, retainage and the next required follow-up. Verify contractual and local requirements with the appropriate adviser. These tools organize the record; they do not collect money, enforce payment or replace accounting records.
Put the plan into practice
- Contractor Invoice & Draw Payment Tracker — Keep billed amounts, receipts, unpaid balances and unbilled contract value distinct.
- Punch List & Project Closeout Tool — Track unfinished items, responsible trades, handover documents and final-balance records.
- Warranty & Service Call Tracker — Follow service requests, appointments, resolution and recorded warranty information.
- Contractor & Remodeler Business Toolkit Bundle — Includes the 16 contractor tools for work from lead intake through project closeout.
These are digital planning tools. Review each product page for its format and included features. Keep backups of important records and verify property-specific figures and requirements with the appropriate professionals.
Related guide: Markup vs. Margin: How Contractors Protect Profit on Every Job.
About the author
Marchelle Cook created Roof & Ratio to help homebuyers, homeowners and real estate professionals organize practical decisions. Her background includes real estate sales, investing and property management. Read how Roof & Ratio presents examples and assumptions.