more-arw search

Q&A Forum

correct invoice date

Ronald Gerhart's Profile

I operate a summer camp from Jul 1 to Aug 11. My fiscal is July1. I send out tuition invoices on March 31 and final payment is due by May 30 for the summer camp, which starts July 1. What date should I post on my billing invoice - March 31, July 1 ?

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

March 31. All revenue is unearned until camp begins. Depending on how you sell tuition, the earning of revenue depends on the number of weeks they attend.

Ronald Gerhart
Title: Executive Director
Company: Project Contemporary Competitiveness (PC..
(Executive Director, Project Contemporary Competitiveness (PCC)) |

Thank you for your prompt response. One further question, are payments received handled any differently in this situation?

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

Payments received are Deferred Revenue (ie. collected but not yet earned). Revenue is actualized as the camp progresses.

Topic Expert
Doug Thompson
Title: Director of Revenue
Company: Castlight Health
(Director of Revenue, Castlight Health) |

Slight clarification. When you first create the invoice it's coded to A/R and Deferred Revenue. The payment just increases cash and decreases A/R like any other payment.

Pam Kyle
Title: Financial Coordinator
Company: TechKnowledgey, Inc.
(Financial Coordinator, TechKnowledgey, Inc.) |

All of these answers assume you are using accrual-based accounting. If you report on the cash basis, your invoice date is irrelevant.

1184 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.