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Liability vs. Revenue
Liability vs. Revenue

How to differentiate between liability and revenue

Cameron Jahn avatar
Written by Cameron Jahn
Updated over a week ago

Proposal payments and retainer payments are considered liability (i.e. you're holding onto the funds until you're ready to apply them to an invoice). Only when you apply the retainer to an invoice is it counted as revenue. This is important to understand because you may notice that your proposal totals and retainer totals are not accounted for in the revenue calculations on your dashboards in Ivy. That's because in accounting, they are not yet considered revenue until they are converted / recorded on an invoice.

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