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Level 1

Is income only counted Once invoice paid? I have made $7000 income. Owed $3000. Once paid is that $10k or is it already included in the $7000 coz I’ve invoices them

 
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QuickBooks Team

Is income only counted Once invoice paid? I have made $7000 income. Owed $3000. Once paid is that $10k or is it already included in the $7000 coz I’ve invoices them

Hello there, @randsflowers.

 

I'm here to guide you when you'll produce income after creating your invoice. This way you'll get to monitor your business position and keep your accounts accurate.

 

Before we start, I'd like to verify the accounting method you're using for your business accounts. Is it Accrual or Cash basis? With the Accrual method, you'll generate an income by the time you create the invoice. While the Cash method records your income once the invoice is paid.

 

If you've created 2 invoices, one for the $7000 and another for the owed $3000, your income will be $10,000. 

 

On the other hand, if the owed $3000 is already included in the $7000 invoice, then your total income is $7000.

 

You can check your business income by pulling up a report in QuickBooks through the Reports menu. You can pull up the Income by Customer Summary report, then customize it to filter the name of your customer. Select the income amount to view additional information.

 

If you wish to use projects to calculate your profits, you can use the "job costing" feature in QuickBooks. For the complete steps, you can check out this article: Track income, costs, and profitability by project. This also provides details on how to make sure your accounts are always accurate.

 

Please let me know if you have other concerns. I'm just around to help.