Cracking the Code of Unbilled Receivables

Unbilled Receivables can present a significant risk for government contractors and can affect revenue, audits, and obtaining lines of credit. Having Unbilled Receivables means revenue has been recorded but not yet billed. It is important to understand what makes up this balance and reconcile this account as part of your month-end process. There are several reasons Unbilled Receivables arise and we have listed the most common reasons below. A best practice approach is to classify your Unbilled Receivables into these nine categories.

• Rate Variances
• Retentions
• Timing
• Deferred Revenue
• Award Fees
• “At Risk” Contracts
• Billings in Excess of Costs
• Costs in Excess of Billings
• Milestone Billings

For more detailed information on these categories (click here).

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