Billings in excess of costs is a financial accounting of project billings that are greater than the actual revenue earned from work performed on the job. This is a technique done by many contractors to cover costs during the course of a project. It also refers to the practice of sending an invoice to a client prior to the completion of a project. To help offset an inflated picture of revenue from overbilling, billings in excess of costs are recorded on a company balance sheet as a liability until the work for those billings is complete.
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