Which Month should our Business recognize \& record Revenue into our accounting records? Our Business Agrees to provide Services to a Customer in January. The Work is performed for the Customer in March. The Cash is Collected in June. January March and June June

In accounting, revenue recognition relies on the principle of realizing income when it is earned, not necessarily when payment is received. In your situation, since the services were performed in March, that's when you should recognize the revenue, regardless of when the cash is collected in June! A common mistake businesses make is assuming they can record revenue when cash is received. This can lead to misleading financial statements. Always match the recognition of revenue to the delivery of the services or goods rather than the cash flow to maintain accurate accounting records and compliance with accounting standards.