When you bill a customer for services performed, how does it affect liabilities, SE, and assets?
submitted by A

BillinTed

When you bill a customer, you're recording revenue you've earned but haven't yet received cash for. So, your accounts receivable (asset) goes up, and your retained earnings or shareholders' equity increases because you've earned that income. Liabilities don't really change at this point since you're just recognizing revenue.

Theodore

Billing a customer increases your accounts receivable, because you haven't been paid yet. Equity will go up because it counts as revenue earned. Liabilities stay the same because you don't owe anything, you're just recording income that you'll eventually convert into cash.

Jameson

Your liabilities wouldn't be affected, because you're not the one taking on debt. That's what happens on the customer's books. Because they're indebted to you, the amount you bill goes in your accounts receivable, which is an asset.