Unbilled income is a common matter encountered in the production and operation of many small and medium-sized enterprises, so how to deal with the unbilled income generated to avoid financial and tax risks? The following points should be followed:
1.Timely recognition of revenue: According to the Accounting Standards for Business Enterprises, an enterprise should recognize revenue when transferring the ownership of goods, providing services, or transferring the main risks and rewards of the right to use assets. Even if no invoice is issued, businesses should recognize revenue when they meet the conditions for revenue recognition.
2.Filing and paying taxes on time: According to the provisions of the tax law, enterprises should recognize sales revenue and calculate and pay VAT according to the actual taxable sales behavior. Even if no invoice is issued, the enterprise should calculate the tax payable at the prescribed tax rate and declare the tax payment to the tax authorities within the prescribed time limit.
3.Issue invoices in accordance with regulations: Enterprises shall issue invoices in a timely manner at the request of customers or under the conditions agreed in the contract. If the customer does not request an immediate invoice, the business should also issue an invoice within a certain period of time after the revenue is recognized.
4.Retain evidence: Enterprises should register the uninvoiced income and keep the contracts, receipts and other evidence related to the uninvoiced income for inspection by the tax authorities.
To sum up, the fiscal and tax treatment of uninvoiced income needs to follow the relevant accounting standards and tax laws to ensure that the tax is properly recorded, declared and paid.