Billings
Definition
A billing invoice is a document that records the amount that you invoice your customers for the purchase of goods or services. It is used to record how much money was spent on the goods or services, and what they were purchased for. The billing invoice is usually sent out by the seller to the buyer after the goods or services have been received.
Is billings a revenue account?
No, billings is an account that shows how much money you'll receive from your client/customer if your project is completed successfully.
Is billings the same as revenue?
No, Billing is when you record how much money you've earned from your clients/customers for completed work. Revenue is when you've actually received that money from those clients/customers in cash or credit card payments etc...
What are billings vs bookings?
Bookings refers to funds committed but not yet invoiced. Bookings are also reported under accounts receivable in the balance sheet, but they represent a different concept than billings because they don't include actual cash received from customers. Bookings can be thought of as an estimate based on past experience with similar projects or customer contracts for future work.
