Evening,
I have a client who is a soletrade carpententer.
If he has invoiced for 8k and has received an interim payment of 4k
Can i recognise the full 8k as revenue for his year end p&l on the basis that it is extremely likely that he will pull all this money ?
Thanks
If the invoicing was for work already done then the whole amount belongs in the current period even if not paid until the next (exceptions apply, see cash basis below).
If the invoice is for work covering a period end then the income and expenditure must be recorded in relation to the state of completion of the project.
Is your client reporting under the cash or acruals basis? Cash basis is a little different in that accounting is against when money is paid or receieved rather than when it is earned or incurred.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
