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Completed contract method for invoicing

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.

See also

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