With this method of invoicing there is no need to estimate the degree of
completion because all income is recognized when the job is completed. This
method is used for small jobs, one-time work, material sales, isolated minor
contracts, and any other job of short duration. Payment for this type of work
is usually in one installment. There is no need to estimate the degree of
completion because you create an invoice in QuickBooks for the work within the
same month that you entered the job-related costs.
Keep in mind that you can use completed contract accounting only when
you'll complete a job within a specific amount of time from the contract
date, and only if your annual gross receipts are under a specific amount.
Contact your accountant or the IRS to find out the current date and annual
gross receipt thresholds for using completed contract accounting.
Accounting methods for
Percentage of completion