How to Track Client Payments in Interior Design Projects
· 8 min read
To track client payments in interior design, keep one ledger per project that separates what the client owes the studio from what the studio owes suppliers. Link every payment to a specific invoice or estimate item and record it on the day the money moves. Below is the method I use: choose the money flow, build the ledger, follow each supplier payment through its stages, and run a short weekly check.
Decide who pays whom before the first payment
Most payment confusion comes from an unclear money flow. Write down which of the two models applies to the project and put it in the contract. It decides what you need to track.
| Model | Who pays the supplier | What you track | Main risk |
|---|---|---|---|
| Client pays supplier directly | Client | Which supplier invoices the client has paid, your fee or commission, and when it is due | The client pays late or skips an invoice, and you only learn about it when delivery is delayed |
| Client pays studio, studio pays supplier | Studio | Money received, money paid out, margin per item, free balance | You pay suppliers from funds that are not yet in your account |
The second model needs stricter discipline. You hold the client's money, so the ledger must always show how much of it is already committed to suppliers and how much is free.
Build the project ledger
A spreadsheet is enough to start. What matters is the structure, not the tool.
Steps to set it up
- Fix the approved budget and the project currency. If items are priced in other currencies, convert them to the project currency and note the rate you used.
- Split the budget by room. A room-level view shows which area is drifting before the total does.
- Agree the client payment schedule. Typical triggers are contract signing, approval of the specification, and each large order. Tie every payment to an event, not just a date.
- Record each client payment with four fields: date, amount, what it covers, and the document it belongs to (invoice number or schedule step).
- Track invoices issued separately from payments received. The gap between them is your receivable.
- Calculate the balance after every entry: approved budget minus paid minus invoiced-but-unpaid equals the part not yet invoiced.
Example of the client side
The numbers below are illustrative only.
| Line | Amount, EUR | Status |
|---|---|---|
| Approved budget | 40,000 | Signed off |
| Invoice 1: advance at approval | 20,000 | Paid |
| Invoice 2: furniture and lighting orders | 12,000 | Invoiced, unpaid |
| Not yet invoiced | 8,000 | Planned for finishing materials |
One look at this table answers the three questions a client usually asks: how much have I paid, how much is outstanding, and how much is still to come.
Track supplier payments item by item
Supplier payments are where ledgers fall apart, because one supplier may cover ten items and be paid in several parts. Track payments at item level and group them by supplier afterwards, not the other way round.
Advance and balance
Most suppliers ask for an advance and the remainder before shipment. Record both parts against the same item. Example, with illustrative numbers:
| Item: sofa | Amount, EUR |
|---|---|
| Client price | 3,000 |
| Purchase price from supplier | 2,400 |
| Supplier advance, 50% | 1,200 |
| Supplier balance, due before shipment | 1,200 |
| Studio margin | 600 |
If you are still deciding how much to add to purchase prices, the markup calculator helps check the margin before you quote the client.
Payment stages
Give every item a payment stage that is separate from its procurement status. An item can be approved by the client while its invoice has not even been requested. That is normal, but you must see it.
| Stage | Meaning | Your action |
|---|---|---|
| Requires invoice request | The item is approved, but no invoice exists | Ask the supplier for an invoice |
| Invoice requested | Waiting for the supplier's document | Follow up if it takes too long |
| Awaiting supplier payment | Invoice received, not paid | Check the due date and the available funds |
| Supplier advance paid | Part paid, balance outstanding | Schedule the balance before shipment |
| Supplier paid | Fully settled | Attach the receipt |
Documents
Attach the invoice and the payment receipt to the item itself, not to a general folder. Months later, when a client disputes a line or a supplier claims non-payment, you need the document within seconds. Record the invoice date and the payment due date as separate fields. The due date drives your cash planning, and the invoice date helps you spot duplicates.
Match client money to supplier commitments
When the studio pays suppliers, one number protects you more than any other: the free balance. Calculate it as money received from the client minus money already paid to suppliers minus supplier invoices due soon.
- List supplier invoices due in the next 14 days.
- Compare their total with the free balance.
- If the balance is short, issue the next client invoice now, not when the supplier deadline arrives.
- If you earn a commission from suppliers, track it as its own line with three states: accrued, requested, received. It is easy to forget because nobody invoices you for it.
Also compare the estimate total with the approved budget regularly. When the estimate grows beyond the budget, the client needs to hear it before the next invoice, not after.
What the client should see
Decide in advance how much payment detail the client sees. Most clients need their own payments, the schedule and the delivery status. Supplier invoices and your purchase prices are usually internal. A client portal with separate visibility settings lets you share progress without exposing your margins.
Weekly payment routine
Fifteen minutes once a week prevents most payment problems. Use this checklist.
- Every payment received this week is recorded with date, amount and the invoice it covers.
- Every payment made to a supplier is recorded and has a receipt attached.
- Client invoices older than their due date are marked and a reminder is sent.
- Supplier invoices due in the next 14 days are compared with the free balance.
- Items about to ship have their remaining supplier balance paid or scheduled.
- Items with an approved status but no invoice requested are listed, and requests are sent.
- The estimate total is compared with the approved budget, per room.
- Supplier commissions that are accrued but not yet requested are listed.
Mistakes that distort the picture
- Recording payments in bulk at month end. Dates drift, receipts get lost, and nobody remembers what a transfer covered.
- Mixing invoiced and paid amounts. An invoiced amount is a claim, not money.
- Paying a rejected or unapproved item. Check the approval status before any supplier payment.
- Ignoring partial payments. If a receipt is smaller than the item price, mark it as an advance, or the item will look fully paid.
- Counting duplicates. The same receipt uploaded twice inflates the paid total.
How to do it in ArchiBoard
The project finance feature covers both sides of the ledger. Item-level payment fields are described in the estimates help chapter.
- Open the project and go to Project Finances. In the finance settings, set your studio role, how you earn (commission, markup or share of supplier discount), who pays whom ("Client → Supplier" or "Client → Studio → Supplier"), the project currency and the approved budget.
- Record client payments and supplier payments as transactions. Supplier payments are grouped by supplier.
- For item-level detail, go to Estimates and click Vendor & payment in the item row. Select the vendor. If it is missing, use "+ Add contractor".
- In Supplier payment, the default is 100%. For part payments, tick "This is an advance" and add the other parts with "+ another part".
- In Supplier invoices, upload files, paste a screenshot with Ctrl+V, or add a Google Drive link. Fill in "Invoice date" and "Payment due date".
- To process many documents at once, click Receipts & quotes in the project-wide estimate, add the files or a Google Drive folder, check the suggested items and "Advance" or "100% payment", then click "Apply". Nothing changes until you apply.
- From a payment, generate a PDF: an invoice to the client, an invoice to the supplier for commission, or a report to the client. Studio details come from your profile settings.
- If the client should see supplier payments in the portal, tick "Supplier payment" in the client portal visibility settings. It is hidden by default.
The system warns you when the estimate exceeds the approved budget, and it can show overspending by room if you allocate the budget that way. Supplier commission is tracked as accrued, requested and received. Totals across all projects are in "Finances" in the main menu.
FAQ
How often should I update the payment ledger?
Update it on the day money moves, and do a short review once a week. Late entries are the main reason ledgers become unreliable, because dates, amounts and purposes are forgotten. A weekly check then only confirms the picture instead of reconstructing it.
Should the client see supplier invoices?
That depends on your contract and how you earn. If the client pays suppliers directly, they need the invoices. If you resell with a markup, supplier invoices usually stay internal. Agree this at the start and apply the same rule to every project so it never looks selective.
How do I record an advance that does not cover the full item price?
Mark the payment as an advance and record the remaining balance as a separate expected part with its own due date. This keeps the item from looking fully paid. Schedule the balance before shipment, because many suppliers do not release goods until it arrives.
What if the client pays late and the supplier deadline is near?
Check the free balance first. If the studio holds the funds, you can pay from the client's earlier advance. If not, ask the supplier for a short extension in writing, and send the client a reminder that names the order at risk. Do not cover the gap from your own money without agreeing on it.
How do I track my commission from suppliers?
Treat it as a separate line with three states: accrued when the order is paid, requested when you send the supplier a claim, and received when the money arrives. Without these states, commissions tend to stay unpaid because no one is reminded to ask for them.