Bookkeep unbilled income and expenses at year-end

Bookkeep your unbilled income

Bookkeep your unbilled expenses

Bookkeep your unbilled income

Unbilled income is income you have received but not yet invoiced your customer for. At the end of a fiscal year, If you are completing work or providing products where there is not yet a billed invoice, the work still needs to be accounted for.

          1. Outside of Wave, review any partially completed orders and customer projects to determine the percentage of work completed and its value. For example, if you have two projects that are both half complete, and one project is worth $2,000 and the other is worth $1,000, you've earned $1500 total from those projects in the current fiscal year.

Create an asset account in your Chart of Accounts to bookkeep all of your unbilled income. To add an account, read Add a new account or category.

          1. On the left-side menu, click Accounting > Transactions.
          2. Click More in the top right corner, then click Add journal transaction.

To learn how to add a journal transaction, read What are journal transactions and how to enter them in Wave.

          1. Debit the asset account and credit the relevant income category for the projects for the income earned so far.
          2. When you invoice your customer for this work, create a journal transaction to reverse the original transaction. Debit the income category for the projects and credit the unbilled asset account for the income received.

Bookkeep your unbilled expenses

An unbilled expense is a service you’ve been provided but not yet invoiced for, such as a phone bill.

To bookkeep these expenses, create a bill for that vendor and date it for when you incurred the expense. When you receive and pay your bill, mark the bill as paid for the date you made the payment.