BQE CORE supports revenue recognition for fixed-fee projects or contracts, allowing accountants to align billing with the progress of deliverables. As fixed fee involves a predetermined bill amount for the entire project, it doesn’t usually use the method described for time and materials, where you would post time and expense entries as they occur. For fixed contracts, revenue is recognized based on the percentage of the project that has been completed (% Complete), and invoices are generated accordingly. For example, an accountant may recognize 50% of the revenue when 50% of the work has been completed and billed to the client.
While fixed-fee revenue recognition is supported in CORE today, future updates might introduce additional tools to help the accountant assess the progress at the point of billing. These tools can provide advanced insights into the project’s completion status and help automate the recognition process.