Example
A $15,000 job with a $6,000 deposit paid leaves a balance due of $9,000.
Also called the amount due, the outstanding balance, or the remaining balance.
What it means in practice
Balance due is the total of the work minus what has already been paid. It belongs near the totals on the final invoice, with the payment that reduced it named on its own line so the client can follow the arithmetic.
State it as a figure and a date, not as a phrase. A client reading "balance due on completion" has a different date in mind from the one you have.
Covered in full in the guide to deposit invoices.
Where it shows up on the paperwork
It sits at the bottom of the totals block, under the subtotal, tax and anything already paid, and it is the number the client's eye goes to first. On a receipt for a part payment it appears as the amount still owed.
What goes wrong
- Showing the balance without showing what reduced it, so the client cannot check the arithmetic.
- Writing it as a phrase such as due on completion rather than a date the client can act on.
- Leaving the deposit off the final invoice entirely and billing only the balance, which reads as a smaller job than it was.
Common questions
Does the balance due include the deposit?
No, it is what is left after the deposit. A thousand dollar job with a three hundred dollar deposit has a balance due of seven hundred, and showing the deposit on its own line is what stops the client paying the thousand again.
What is the balance due after a partial payment?
The total minus everything received so far. List each payment with its date rather than one combined figure, so a client checking their bank statement can match them.
Balance due vs total: what is the difference?
The total is what the whole job costs. The balance due is what is left of it after deposits and part payments. On an invoice with no earlier payments they are the same number.
What does a balance due line look like?
It sits under the total and reads as one figure: total 4,200.00, deposit paid 1,400.00, balance due 2,800.00. Showing all three lines is what stops the client paying the total again by mistake.
How do I show a deposit on the final invoice?
Name the deposit invoice and the amount paid, then bill the balance. If your tool has no line for a payment received, put the sentence in the terms and list only the balance as line items.