How to Account for Invoices
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How to Account for Invoices
Sending an invoice changes your books, but how depends on your accounting method. Under accrual accounting, revenue is recorded when it's earned (usually when you issue the invoice): 👉 Dr Accounts Receivable $500 👉 Cr Revenue $500 Then when payment arrives: 👉 Dr Cash $500 👉 Cr Accounts Receivable $500 Under cash accounting, the ...
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