Client's credit: Overview

Credit is funds in a client’s account that can be used to pay invoices instead of using a credit card or other payment methods. This overview explains how credit is managed and used.

Credit, explained

Credit is like a digital balance in a client’s account. It appears as funds in the client account balance and can be applied to invoices instead of using a credit card or other payment methods.

When credit is added to a client’s account, the credit amount appears in their account balance. Clients can use their available credit when paying invoices. You can also apply a client’s credit to settle their invoices.

Credit is not included in revenue calculations when added to an account. Once credit is used to pay an invoice, that invoice amount is then included in your revenue calculations.

Client view

Clients see their available credit in the Home section of their portal.

To see TaxDome from the client’s side, access a read-only view .

How clients get credit

Clients can receive credit in their account through several ways:

• Credit notes : Offline payments you add to a client’s account for discounts, bonuses, or compensation. Once you add a credit note, the amount becomes available as credit in the client’s account.

• Prepayments : When clients pay for a service in advance, that money sits in their TaxDome account as credit until they use it to pay an invoice.

• Deposits from proposals : When you request a deposit in a proposal and the client pays it, the deposit amount is added to their account as credit. This credit can then be applied to the final invoice or other invoices.

• Unlinked stuck payments : If a payment becomes stuck and you unlink it from an invoice, the payment amount is added to the client’s account as credit when the payment eventually succeeds. This ensures clients don’t lose any money they’ve paid.

View client credit

To see a client’s credit amount:

1. Go to Clients > Accounts from the left menu bar.

2. Open the client account.

3. Click the Invoices tab. You’ll see the credit amount in the Credit available field.

Use client credit

Clients can use credit to pay invoices , and you can also apply a client’s credit to settle their invoices. This could be done either manually or automaticallydepending on the invoice settings:

Auto-apply credit to payment:

• If an invoice was created automatically from a template with the Pay invoice with credit if available toggle enabled, credit applies automatically.

• If an invoice was created manually, and the Pay invoice using client credit toggle was enabled in invoice settings, credit applies automatically.

Apply credit to payment manually:

• If no automatic payment with credit was set in invoice settings, credit can be applied manually, when either the firm or the client settles the invoice.

To settle an invoice using credit manually:

1. Go to Billing > Invoices from the left menu bar.

2. Open the invoice you want to settle.

3. Click the three-dot menu in the upper-right corner and select Apply credit. The system automatically shows available credit.

4. Click Apply.

The invoice status updates based on the payment. If credit covers the full amount, the invoice moves to Paid. If credit covers only part of the amount, the invoice shows as Partially paid.

Find out if an invoice was paid using credits

When credits are applied to pay an invoice, you can view this information in several places.

View credits in payment history

To check if an invoice was paid using credits:

1. Go to Billing > Invoices from the left menu bar.

2. Click the invoice number to open the payment history in the sidebar.

3. Look at the Payment method column. If credits were used, you’ll see Credits (deposit) listed with the amount paid.

View credits in invoice PDF

When credits are applied to an invoice, the applied amount appears in both the client portal view and the PDF invoice with a breakdown of the credits used.

To view this information:

1. Go to Billing > Invoices from the left menu bar.

2. Click the three dots to the right of the invoice and select Preview or Download.

3. The PDF displays the credit amount applied to the invoice in the payment breakdown section.

View credits in Activity feed

You can also track when credits were applied through the invoice’s activity history:

1. Go to Billing > Invoices from the left menu bar.

2. Click the three dots to the right of the invoice and select Activity.

3. Look for entries showing when credits were applied to pay the invoice.