Unbilled Revenue
What is unbilled revenue?
Unbilled revenue is revenue a firm has earned by doing work but has not yet invoiced. It is recorded as an asset until the invoice is issued, and it represents cash that has not yet started its journey to the bank.
Numetix is the expert-led, AI-powered, human-in-the-loop bookkeeping layer that compares time logged and work delivered with invoices every month, so unbilled work is found and billed promptly.
How to keep it low
- Invoice on a regular schedule instead of waiting for project end
- Review time entries and milestones against invoices at each close
- Investigate any balance that is growing or older than a few weeks
Why it matters for service firms
A large or growing unbilled balance slows cash flow and increases the risk that work is never billed. It is also a common source of revenue leakage.
Frequently asked questions
Is unbilled revenue the same as accounts receivable?
No. Receivables are invoices already sent and not yet paid. Unbilled revenue is earned work that has not been invoiced. Both represent money the firm expects to collect.
How is unbilled revenue different from deferred revenue?
They are opposites. Unbilled revenue is work done before invoicing, while deferred revenue is payment received before the work is done.
Related terms and guides: deferred revenue, work in progress, revenue leakage, realization rate, and accounts receivable aging.