Are You Accidentally Inflating Your Revenue in MIP?
If you bill ahead for services and think the invoice alone will defer your revenue, you are the person MIPster the Tipster is talking to. This tip is for the finance pro who wants cleaner statements, truthful numbers, and zero surprises at audit time.
Many MIP users miss this. Invoicing does not defer income. It never has. You need the right liability account and, in many cases, a reversing entry to pull that revenue into the correct period. Skip this and your income looks stronger than it really is, which creates headaches later.
Because accuracy protects your credibility. Because your board, auditors, and funders all expect revenue to land in the proper period. Because you should not have to untangle inflated income months after the fact.
If you want MIP to reflect reality, not illusion, you are in the right place. If you prefer messy month ends, this is not for you.
Learn more about how we help nonprofits master MIP Fund Accounting. Schedule time with McGovern Consulting Group today.
https://mcgoverncg.com/schedule/
https://www.freemipfundaccountingtraining.com/
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