Navigating Over and Under Contractor Billings: A Comprehensive Overview
Contractors face many unforeseen issues that are often difficult to anticipate. Unexpected supply costs, changed orders, and unpaid accounts payable (AP) are all common causes of over- and under-billings. Overbillings are listed on your balance sheet as an asset since the amount billed exceeds the cost incurred. However, overbilling decreases your current year-to-date profit. Unapproved…