Once products/services are delivered to a customer, you create an invoice and submit it to customer, don’t you? That is only a start. A better billing and invoicing procedures should, at least, covers the following two aspects: (a) prudent control; and (b) accounting standard compliance.

In other words, the procedures should be able to lead the billing and invoicing flow in such way so that erroneous and bad-conduct is minimized, yet revenue recognition rule is well followed. What is better billing and invoicing look alike?

Through this post, I am going to cover a better billing and invoicing procedures that not only minimizes error, but also minimize bad-conduct that lead to asset lost and still comply with the current revenue recognition rules. The first section of this presentation refreshes the accounting standard you should care about when recognizing sales revenue and the second section provides a detail guidelines set on how to handle billing and invoicing process for more prudent control. Read on…