Page 318 - TCDB combined Book

Chapter 6 MANAGEMENT 297

Accounts Receivable:

We do not recommend maintaining a separate listing for these deficient payments apart
from your overall progress billings, due to the problems with reconciliation when the project is
completely billed out. The simple method of adding the deficient amount as a line item on your
subsequent billings will enable you to maintain your single basic invoice system, regardless of the
payment amounts.

All Progress Billing Invoices should clearly state the due date and any applicable interest
charges for late payments and be in strict accordance with your contract terms.

Financial Statements:

The integrated type accounting systems will normally produce the year-end Statements
used for the various reporting purposes. Providing that Bank Statements are reconciled monthly
and Balance Sheet Statements are produced and corrected on a regular basis the preparation and
finalization of this year-end Financial Statement should be easily facilitated.