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Gross Revenue Question

Andrea M's Profile

I am new to bookkeeping and had a question in regards to what the gross revenue of a company is based on. For instance, is gross revenue based off of what is invoiced for the month or what money was deposited that month?


Sharon Binau
Title: Bookkeeper
Company: MHR
(Bookkeeper, MHR) |

It depends on whether you are Accrual or Cash basis. With Accrual basis, cash is recognized when you invoice the customer, not when it is collected. The reverse is true for Cash basis when the customer pays you the money is recognized when it is collected, not when it was invoiced.


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