In one line
The last invoice on a job, billing whatever is left after deposits and progress payments.
Also called the closing invoice or the completion invoice.
What it means in practice
A final invoice does two jobs: it bills the balance, and it reconciles the whole job. It should show the contract sum, anything already billed, approved change orders as their own lines, and the amount now due.
Send it the day the work is accepted. On contracts with retainage, the held amount is usually billed separately once the job is signed off.
Covered in full in the guide to progress billing.
Example. Contract $19,300, billed to date $13,522, this invoice $5,778.
Where it shows up on the paperwork
It carries the whole job: the contract sum, anything billed before, approved change orders on their own lines, retainage if the contract has it, and the amount now due.
What goes wrong
- Sending it a week after the walkthrough, when the value of the work has already faded.
- Leaving approved change orders off it and hoping nobody notices, which guarantees a dispute.
- Forgetting to bill retainage at all, so the held money quietly stays with the client.
The tools for this
Related terms
- Balance dueThe amount still owed on a job after any deposit or part payment.
- Progress billingInvoicing one job in stages as they are completed, rather than in a single invoice at the end.
- RetainageA percentage of each progress payment held back by the client until the job is accepted.
- Lien waiverA signed document giving up your right to place a lien on a property, usually exchanged for payment.
Common questions
When should I send the final invoice?
The day the work is accepted. Same-day invoicing is the single change that moves payment dates earliest, because the job is still fresh for the person approving it.
Should the final invoice repeat everything?
It should show the arithmetic of the whole job even if the lines are summarised: contract sum, billed to date, changes, retainage, amount due. That is what stops the client rebuilding it themselves and finding a question.