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Quickbooks – Can We Do One Monthly Invoice for Work in Previous Months?

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Quickbooks - Can we do one monthly invoice for work in previous months

Can we do one monthly invoice for work in previous months

An interesting question in the last few days on the Intuit forum – HERE

“The company I work for is using accrual accounting and Quickbooks Online. They charge for several services each month. For example, a monthly invoice will include a monthly service fee for the month the bill is issued as well as charges for specific services performed in the previous month. They want all charges to be on 1 invoice but want the charges to show up in the appropriate month. They used to send 2 different invoices. One dated with the last day of the previous month and the other with the first of the current month. This allowed their reporting to accurately show their income. Is there another way to do this so that we only have to send out 1 invoice per customer?”

One answer given was: “I don’t see how you can do that without impacting the aging on the A/R account for the customer. For example, if you record the income for the [previous month] services rendered at the time they are earned but not invoiced, by the time an actual invoice is created and sent, the balance due is already x days old.”

To answer further: I say that work of past months can be included in an invoice with any date noted, but will only be recognised on the accounts when INVOICED, so the way they are invoicing over two or more months will best reflect their income, as generated. This is the way accounting works.

Any solutions you use?

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Author: accountkeepingplus

Administration, bookkeeping and compliance for small business, and Self-Managed Super Funds (SMSF) Training, trouble-shooting, or we can do the books and payroll for you! Self Managed Superannuation Fund Service Provider, Free support MYOB Certified Consultant, Reckon/QuickBooks Professional Partner.

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