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C
chewitt-peoplepl
August 21, 2024
Question

How do I recognise revenue on a monthly basis, when invoicing quarterly in arrears?

  • August 21, 2024
  • 1 reply
  • 0 views
Several of our customers are invoiced quarterly in arrears. With some customers the revenue is consistent across the quarter, with others it is volume-based. We would like to recognise the revenue on a monthly basis. At the moment, we create a journal entry to recognise the revenue each month, but I was wondering if there was a better way to do it.

1 reply

R
Rea_M
August 21, 2024

I know another way you can recognise monthly revenue in QuickBooks Online (QBO), chewitt. I'll discuss the details below.

 

You're already on the right track in creating a journal entry to recognise monthly revenue. Since you want to enhance your current process, I'd recommend consulting your accountant. This way, you'll be guided with appropriate methods to handle and manage your income.

 

On the other hand, you can set up an automatic schedule to help with revenue recognition using QuickBooks Online Advanced. If you wish to learn more about this, please see this article: Revenue recognition in QuickBooks Online Advanced.

 

Moreover, QuickBooks offers two approaches (cash and accrual accounting) to display your business income in reports. For further insights, you can check out this article: Choose between cash and accrual accounting methods in QuickBooks Online.

 

I've got you covered if you have other questions about recognising revenues in QBO. Kindly update me by leaving a comment below. Stay safe.

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