Guide · Getting paid
How to invoice a deposit or retainer
A deposit is paid against a specific job. A retainer buys access to your time. Both need to be visible on the invoice, or you will end up billing the client twice — or not at all.
Deposit vs retainer
A deposit is a partial payment for a defined piece of work. It is deducted from the final invoice. A retainer is a recurring fee that reserves your availability, usually credited against hours worked in that period.
Invoicing a deposit
Send a normal invoice, marked clearly as a deposit. Two clean ways to show it:
- Percentage line: “Deposit — 50% of project total”, amount $2,250.
- Milestone line: “Mobilization deposit”, amount $2,250.
Then on the final invoice, list the full work and add a line that deducts what was already paid. The client should be able to see: total work, less deposit, balance due.
Invoicing a retainer
Bill the retainer at the start of the period, and show hours used against it on the next statement or invoice. If the retainer is a credit, do not also bill those hours as new work — that is double-billing, and clients notice.
A clean example
| Line | Amount |
|---|---|
| Website redesign — final | $4,500.00 |
| Less deposit paid (BC-0003) | −$2,250.00 |
| Balance due | $2,250.00 |
The invoice tool has an “Amount paid” field that produces exactly this: total, amount paid, balance due.
Three things to settle before you invoice
- Refundable or not. Say it in the quote and the contract. “Non-refundable deposit” is a different promise from “deposit”.
- Sales tax on deposits. Some states treat a deposit as taxable when received; others tax the final sale. Check your state's department of revenue — this guide is not tax advice.
- Numbering. Give deposits their own series (e.g. DEP-0001) or a clear suffix, so the final invoice can reference them without ambiguity.