QuickBooks Online offers two paths for progress billing. Its standard progress invoices split an estimate across several invoices. Advanced added construction financials in August 2026, including AIA-style invoicing tied to phases and milestones. Check its current output against your contract's G702/G703 style fields, retainage, and stored materials. A separate AIA billing tool can handle those pay-app details and sync invoices to QuickBooks Online.
Which QuickBooks plan fits your billing?
QuickBooks Online tracks income and expenses. Its standard progress invoices work from an accepted estimate. Advanced adds AIA-style billing and other construction tools.
Some contracts need more detail than a standard progress invoice shows. Compare the invoice or pay app with your GC's required format before billing.
For the fields to check, see the G702 and G703 guide. You can also compare Werx with QuickBooks.
Key parts: schedule of values, retainage, and change orders
| Line item | Scheduled value | % complete | Completed to date | |
|---|---|---|---|---|
| 1 | Mobilization & permits | $10,000 | 100% | $10,000 |
| 2 | Rough-in | $70,000 | 80% | $56,000 |
| 3 | Panels & gear | $50,000 | 45% | $22,500 |
| 4 | Fixtures | $45,000 | 20% | $9,000 |
| 5 | Trim & final | $25,000 | 0% | $0 |
What is a schedule of values?
The schedule of values breaks your full contract amount into line items. Each line is a phase or part of the job.
HVAC contractors might split ductwork, system install, and controls. Plumbers might split rough-in, fixtures, and final testing. For more, see how to build a schedule of values.
How does retainage work?
Retainage is a slice of each payment the client holds back until milestones or the whole job is done. It usually runs 5% to 10% of each pay app. Tracking it by hand in QuickBooks is tricky.
With retainage tracking in dedicated software, you always know the amount withheld and when to bill for the retainage release.
What about change orders?
No job goes exactly to plan. Change orders cover extra work or changes during the build. Tracking them, updating your SOV, and billing right in QuickBooks Online gets messy fast.
How to do AIA billing in QuickBooks Online, step by step
1. Set up the project and contract
Enter the project as a customer or sub-customer in QuickBooks Online. Add the total contract value, project address, and client details.
2. Build your schedule of values
Break the contract into line items for each phase or part of the work. Match those lines to your GC's required pay-app format. Our free schedule of values builder does the line math online and exports to Excel.
3. Calculate and track retainage
Apply your contract retainage percent to each line or the full invoice. Most contracts call for 5% or 10%. Software makes this faster and more accurate than a spreadsheet.
4. Generate AIA-style progress invoices
Each billing period, figure the percent complete for every SOV line. Build a progress invoice that shows current billing, prior billing, and retainage held. For the full process on the forms, see our AIA retainage billing guide for G702 and G703.
5. Manage and bill change orders
Record change orders as new line items or SOV adjustments. Update your invoice and project totals to match.
How does Werx make AIA-style billing easy?
Simple schedule of values and progress billing
Build your schedule of values straight from your estimate, so every cost item lands in the right place. Generating AIA-style progress invoices takes a few clicks, with the fields filled in for you.
Automatic retainage and change orders
Werx withholds the right retainage percent and flags it for release at the right time. Change orders drop into your pay app and update your SOV and invoice totals on their own.
QuickBooks integration that keeps books accurate
All your projects, invoices, and payments sync with QuickBooks. That ends double entry and keeps your financial records correct.
What about QuickBooks Online Advanced?
In August 2026 Intuit added construction financials to Advanced. That includes job costing, budget versus actuals, change orders, WIP reporting, and AIA-style invoicing tied to phases and milestones. Intuit describes the construction tools as beta.
That gives contractors another option to evaluate.
Construction financials are on Advanced. Check Intuit's current plans and prices before choosing a plan.
Intuit's overview does not specify every pay-app field or output format. Ask to see a sample for your required G702/G703 style billing, retainage, and stored materials. Feature access may vary while the construction tools are in beta.
If you are landing in QuickBooks Online after leaving Desktop, see what contractors lose moving to QuickBooks Online.
When should you move past QuickBooks workarounds?
Stick with QuickBooks alone if you rarely send AIA pay apps and a spreadsheet covers it. For a one-off small job, the workaround may be fine.
If you bill regular commercial jobs, test one real pay app before deciding. Check the SOV, retainage, stored materials, and change orders against your contract.
Key takeaways
- QuickBooks Online has progress invoices. Advanced added AIA-style construction billing in 2026.
- A precise schedule of values is the base of accurate progress billing.
- Check each contract's retainage terms and pay-app fields before billing.
- Change orders must flow into your SOV and billing each cycle.
- Werx builds G702/G703 style pay apps and syncs invoices to QuickBooks Online.
