Reply
cancel
Showing results for 
Search instead for 
Did you mean: 
Reply

Escrow and Invoices for accounting purposes

Highlighted
Active Member
Zane B Member Since: Mar 23, 2019
1 of 3

Hi there,

My accountant has a question:

If I start for example a $10,000 contract today with a freelancer and we agree to 4 milestone payments of $2500 each, and I deposit $10,000 to Escrow to hold the full amount, and I do this today, May 16 (June 30 is some 6 weeks away), 

a) Will I receive an invoice for the full amount upon depositing to Escrow? Enablng me to claim the full amount as an expense before June 30, or

b) Will I only receive an invoice as each milestone is released? And therefore only be able to claim each milestone payment release as an expense? In this case if 2 payments were released before June 30, and 2 payments were released after June 30, I'd only be able to claim the first 2 milestone payments in this financial year.

 

Any help appreciated.

Cheers

Zane

Moderator
Avery O Moderator Member Since: Nov 23, 2015
BEST ANSWER
2 of 3

Hi Zane, 


I'm not sure about claiming milestones as an expense, so I would recommend that you consult with a local finance advisor so that you can be given a more conrete answer to your question. 

But for your other question, you will receive an invoice for the first time you fund the milestone (when you send an offer to the freelancer), for each time you fund a milestone, and each time you release a payment to the freelancer. You will also receive an invoice for the Upwork processing fees. These invoices are accessible on your Transaction History page, which you can download in bulk, or one by one. 


Let us know if you have further questions and our team will be happy to help you!


-Avery
Untitled
Active Member
Zane B Member Since: Mar 23, 2019
3 of 3

Perfect! Thank you Avery Smiley Happy

TOP SOLUTION AUTHORS
TOP KUDOED MEMBERS