Percentage of Completion and Work in Progress
The revenue principle of GAAP requires revenue to be recorded in the period it is earned regardless of when it is billed or when cash is received. This is a simple measure if you are selling and shipping a product to a customer, but can become an administrative challenge for companies that are delivering high value, lengthy installation projects. A lot of companies we talk to have disconnected accounting and project tools. They are left to reconcile and manage revenue recognition on spreadsheets, which results in huge investments of time to ensure accuracy.
Q360™ with its project management tools driving accounting, eliminates the arduous task of manually calculating work in progress and cost percentage complete. The matching principle of tying revenues and their direct costs is automatically managed by Q360™.
Q360™ automatically tracks estimated costs and revenues, actual costs and revenues, total billings and percentage complete and keeps them in line, as close to real-time as possible.