Invoices (Advanced): Enable prepayment for clients

Let your clients pay in advance to get credits and have your invoices paid a moment after they were issued. Learn how to adjust payment settings and enable prepayment for your clients.

How prepayment works

Your clients may want to pay for a job in advance, and that money will sit in their TaxDome account as a credit until they’re ready to use it for paying the invoices. So, making a prepayment adds credits to the client's account.

Credits are not limited to the client's use. Firm members can also use them to pay the client's invoice.

This is how your clients can use them when paying the invoice. They can pay the remaining partial or full amount in the Amount to pay field.

You can also issue an invoice in advance and ask your clients to pay it partially as a prepayment.

Prepayment vs Partial payment

There are the differences between partial payments and prepayments:

Partial payments are enabled by default, while prepayments need to be set up. More about the client perspective on partial payments.
Partial payments are convenient for those of your clients who have many invoices and need to pay a particular invoice. For example, if you provide several services. The benefit of prepayments, in this case, is that you don’t even have to issue an invoice to request them.

Enable prepayment

Adjust your payment settings before turning the prepayment on. This can be done only by a firm owner or admin.

Step 1. Payment settings

Go to Settings > Integrations and make sure you set the following:

The Hide invoices from clients option is toggled off.
Your preferred payment provider is connected
Your payment provider is set as the default provider.
A payment method is chosen. Select Credit Card or Bank Debits if you want to have both methods available for prepayment, or select only the preferred option from the dropdown.

Step 2. Turn on prepayment

1. Toggle the Enable prepayment in the Preferences section.

2. Choose one of the available prepayment methods.

You will see the available prepayment methods to choose from only if you selected Credit Card or Bank Debits in the Payment Method section. Otherwise, the prepayment method is the same as the payment method selected.

What does the client see with prepayment enabled

If the Prepayment feature is enabled, your clients see the Make prepayment link to the right of their to-do list on their dashboard.

Once clients click the Make prepayment link, they can type in the prepayment amount and Submit it. A payment window opens, and the client can proceed with the payment.