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  • About Us
    • Nick Setchell – RealTime CEO
    • Vistage & TEC WorkshopsNick Setchell has been working with Vistage, the world’s largest CEO organization, since 2001.
    • NewsSee what’s happening with RealTime CEO.
    • Economic Update Report
    • Contact UsReach out to us. If you’re interested in booking Nick to give a keynote address or workshop at your conference, please include the date and location.
  • Concepts
    • Fiscal Focus Financial Statement AnalysisUnlock the hidden numbers in your P&L and balance sheet to see how you’re performing in 11 vital metrics.
    • Should We? / Can We?View, in real time, the actual financial impact of the hundreds of business decisions your team makes every month.
    • 24 Month Rolling ForecastingBlend your trailing twelve months with a rolling 12-month forecast to get a complete financial picture of your business.
    • J Curve ManagementTrack the number of investments you’re undertaking, the 3 phases of each, and the 5 rules for managing them.
    • Return on Operations – ROOView your return on operations percentage — your ROO % — the most powerful number to measure business success.
    • CEO Performance AnalysisBenchmark your performance as a private-company CEO against others in your industry.
  • Resource Center
  • Blog
  • Login
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Tagging Billings in Excess of Costs and Costs in Excess of Billings

This is our general recommendation of the tagging treatment of these accounts.

Costs in Excess of Billings (Asset)

Generally on the Asset side it is tagged as Other – it is viewed as operational because if the project or work (that the costs relate to) were not to go ahead, the goods would not be returned and a refund would not be given – i.e. you would ‘wear’ those costs.

Billings in Excess of Costs (Liability)

On the Liability side, if a client has prepaid and the project or work does not go ahead, you would normally have to refund that money. It is normally tagged as Deferred Revenue (but Related Party Loans is treated the same) which is a non-operational liability for that reason.



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