How to do you determine your 'sales / revenue' for each month?
How to do you determine your 'sales / revenue' for each month?
For example, if I received a project that's worth $10,000 in Aug, and will be splitted 3 installments.
$3000 (deposit) in Aug
$3000 in Sep
$4000 in Oct
Will I put $3000 in sales for Aug (since thats the amount I actually received), or $10000 for Aug (since that's really the amount I closed).
If I go with the latter, then what happen if the client doesn't pay the bill 3 months later? Would I have to deduct it off my Oct balance then?
Whats the proper way of doing this? Thanks.
For example, if I received a project that's worth $10,000 in Aug, and will be splitted 3 installments.
$3000 (deposit) in Aug
$3000 in Sep
$4000 in Oct
Will I put $3000 in sales for Aug (since thats the amount I actually received), or $10000 for Aug (since that's really the amount I closed).
If I go with the latter, then what happen if the client doesn't pay the bill 3 months later? Would I have to deduct it off my Oct balance then?
Whats the proper way of doing this? Thanks.