We’re fluent in startup finance. Now you can be too.

Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.

Oops! Something went wrong while submitting the form.

What are Billings?

Software as a service (SaaS) companies often track their current and future income in three ways: bookings, billings, and revenue.

Bookings are the total value of a signed contract — you “book” a client when they sign a contract and agree to pay you. However, unless the client pays upfront, you haven’t received the money yet.

Billings are the money that you’ve invoiced for and will be paid soon. For example, if a client has a one-year contract and agrees to pay $250 every quarter, you might book $1,000 when the contract is signed and the billings will show $250 every three months, each time you invoice them. 

However, to comply with generally accepted accounting principles (GAAP), you can’t recognize the revenue until you earn the money by delivering the products or services. 

If you charge for the upcoming quarter’s services, you might add the money to billings at the start of the quarter. However, you might recognize $83.33 in accrued revenue ($250 divided by three) at the end of each month. The remainder of the quarter’s value may be categorized as deferred revenue — you’ve sent a bill and collected the money, but haven’t delivered the service yet. 

Need help with other finance or startup questions?

Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.

We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at info@pilot.com.

See what Pilot can do for you

Get the peace of mind that comes from partnering with our experienced finance team.

Oops! Something went wrong while submitting the form.