Cadet
Regular price$29$14.50 / month
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1 seat included
- Public proposal approval & signing
- Deposit on acceptance
- Proposal-to-invoice conversion
- Billable time tracking
- Public intake forms
Getting paid
Deposit invoice: how to bill an upfront payment.
A deposit invoice asks the client to pay part of the fee before work starts. It confirms the client is committed and protects your time. Here is what to put on it and how to show the deposit again on the final invoice.
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In short
A deposit invoice is an invoice for an upfront part of the agreed fee, sent after the client accepts the proposal and before work starts. It should show the project, the total agreed fee, the deposit percentage and amount, the due date, how to pay, and a note that the deposit will be credited against the final invoice. Many freelancers ask for 25% to 50%.
What to include on a deposit invoice
A deposit invoice has the same basics as any invoice, plus a clear link to the full fee:
- Your business details and the client’s billing details
- A unique invoice number and the issue date
- The project name and a reference to the accepted proposal or contract
- The total agreed fee for the project
- The deposit line: for example “Deposit — 50% of $6,000 project fee”
- Tax, if it applies to the deposit where you work
- The due date, ideally before the start date
- How to pay: a payment link or bank details
- A note: “This deposit will be credited against the final invoice”
Example
Project: brand identity, agreed fee $6,000. Deposit invoice INV-041: “Deposit — 50% of $6,000 project fee: $3,000. Due on receipt; work starts when payment is received.” Final invoice INV-047: “Brand identity project: $6,000. Less deposit paid (INV-041): −$3,000. Balance due: $3,000.”
How much deposit to ask for
Many freelancers and small studios ask for 25% to 50% of a fixed-fee project before starting. Larger projects often split the fee into a deposit and milestone payments instead. Whatever you choose, put it in the proposal and contract first, so the deposit invoice is no surprise.
Deposit vs retainer vs security deposit
A project deposit is part of the fee paid in advance and is credited on the final invoice. A retainer is a recurring fee for ongoing access or work. A security deposit is a refundable amount held against damage or loss, common in rentals and events. Whether a deposit is refundable depends on your contract and local law, so state it clearly.
Keep the deposit with the proposal and the final invoice
The fastest path is proposal, contract, deposit, kick-off. In Workspace369, the approved proposal, the deposit invoice with its payment link, and the final invoice all sit on the same client record, so you can see at a glance what has been paid and what is still due.
FAQ
Common questions
Is a deposit invoice the same as a regular invoice?
It has the same format and details, but it bills only part of the agreed fee and says so. Give it its own invoice number and refer to it on the final invoice when you credit the deposit.
Should I start work before the deposit is paid?
Many freelancers do not. Saying “work starts when the deposit is received” in the proposal and on the invoice protects your time and sets the start date clearly.
Is a deposit refundable?
It depends on what your contract says and on the law where you work. Many contracts make a deposit non-refundable once work has started, to cover time already spent. Say clearly in the contract what happens if the project is cancelled.
How do I record a deposit in my accounts?
Rules differ by country and accounting method. In many accrual systems a deposit for work not yet done is recorded as a liability (deferred revenue) until you deliver. Check with your accountant.
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Regular price$149$74.50 / month
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