You Decide: Can pre-billing customers increase revenues?
Response to the following problem:
For the past year, you have been working as an accountant for a local Internet Service Provider. Business is growing steadily with the holiday season just around the corner. The company hopes to reach more customers next year through additional advertising. In order to do so, it will need a loan from the bank. You overheard your boss say that if revenues increase 5% by year-end, the company will be in good enough shape to receive the loan. Your boss asks you to send out invoices to a handful of customers charging them for a service that won't be provided until the next year and to recognize the billings as revenue.
He says they will eventually receive the service but it is more important to recognize the sale now. What should you do?