at the year end of fiscal year, how can I record my hours provided for my clinets but not billed yet. Inventory should be debitted and then what should be creditted?

Thanks.

CaptainForest

You are a service company since you wish to bill them for your time. Therefore, there is no inventory.

Dr. Accounts Receivable
Cr. Sales

The Sales being the time you worked for them doing whatever service they required.

Just because you haven’t billed them for it, does not mean you haven’t earned the money. Therefore it should be recorded as a sale for this year since that is when you preformed the work and earned the money.

Grizzly

Hi Captain Forest,

Thank you so much for the reply. I wanted to thank you here. This is my first time to use this website and I didn't know how it works.

CaptainForest

you're welcome