more-arw search

Q&A Forum

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?

Answers

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.

41 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.