Mastering Retention and Progress Payment Tracking for Tradies
14 October 2026 · 5 min read · By Heaney Accounting
The Importance of Clear Payment Terms
Many trade businesses fall into the trap of finishing a job before sending an invoice. To keep your cash flow healthy, break large projects into clear milestones so you can bill as you hit specific project phases.
- Clearly define project milestones in your initial quote
- Send progress invoices as soon as each milestone is met
- Set up a tracking spreadsheet for all retentions held by clients
- Follow up immediately if a payment date is missed
Pro Tip: Never start work without a signed contract that clearly outlines your progress payment schedule. It protects your business if the client tries to delay payment until the very end.
Managing Retention Money
Retention money is often forgotten, but it represents profit sitting in your client's bank account. Keep a dedicated log of when these funds become due so you can chase them up the moment they are owed.
Try the related tools
Found this useful?
Get each new guide by email as it's published. No spam, no lock-in.