Contract and performance-obligation fact gathering.
A practical lesson on milestone and progress billing, the contract facts that matter, and the evidence a reviewer needs before revenue is recognized.
Invoice timing is not always revenue timing.
Milestone and progress-billing arrangements can make a monthly revenue schedule look simple when the underlying contract is not. A client invoice may be issued before work is performed, after work is performed, or in stages that do not match the accounting question.
This lesson covers the first part of a disciplined ASC 606 review: assemble the signed agreement, statements of work, change orders, billing terms, and objective progress evidence before deciding what belongs in a schedule.
Read the agreement and changes together
Identify the customer, the promised goods or services, pricing, milestones, acceptance terms, and any change orders that modify the original arrangement.
Identify performance-obligation questions
Document whether promised deliverables appear distinct or are part of a combined obligation that needs qualified review.
Collect objective progress evidence
Keep delivery records, client sign-offs, completion logs, and other evidence alongside the contract rather than relying only on the invoice schedule.
This is educational content, not accounting advice. The facts, applicable guidance, and qualified professional judgment determine the appropriate treatment for each client.
Give the firm’s AI workflow the approved context.
Numbers Game can provide a firm’s chosen Claude or ChatGPT workflow with controlled access to approved QuickBooks Online or Xero data, plus firm-owned Markdown reference files and instructions. That can help the team organize client facts and surface missing information for review.
The firm’s qualified reviewer remains responsible for evaluating the contract, applying the guidance, and approving conclusions. Numbers Game does not independently determine GAAP treatment.
See how firm instructions work → · Previous lesson: revenue recognition overview →
Continue to review notes and client communication.
Learn how to preserve evidence, document judgment calls, and explain revenue timing clearly.