Transactions are entered into the accounting records at the time they take place whether cash is exchanged or not.  Sales/revenue is recorded at the time:

  • an invoice is issued on work that has been performed
  • a contract with services has been entered into that requires the organization to make a payment
  • expenses are recorded at the time the bill is received
  • expenses are also recorded when a contract is entered into that obligates the organization to make a payment.
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