Our construction company is building an storage building for a customer which costs about $300,000. He would like us to invoice him one line item at a time, which is going to end up being about 300 invoices since all of the items are below $1,000. Why would he want us to do this?

ANSWER

The BIDaWIZ Team's Answer:

The customer wants to be invoiced according to progress billing. This is somewhat common in the construction industry as the client would like to account for the transaction on a percentage of completion basis. There may be a strategic tax reason for why the client would like to be invoiced in this fashion.