Percentage of Completion Method
- Project Management

Percentage of Completion Method

When it comes to setting up and managing a business, every situation has its own quirks and foibles. That partially due to the type of business: Someone that sells clothing doesn’t have the same operating model as someone who runs a roofing business. It’s also due to whatever makes management comfortable with the variety of accounting methodologies available to them. That includes recognizing revenue.

One of the types of revenue recognition that’s widely used depending on the type of business is called the percentage of completion. This method recognizes revenue based on how much of a project is complete. So, for example, if that roofing company has a large job that’s half complete, they’re going to recognize half of the expenses and half of the revenue. What other factors come into play for the percentage of completion methodology and when should you consider it? This graphic helps to explain it.

Everything You Need to Know about the Percentage of Completion Method (PoC)

Via Salesforce

We believe everyone can be a Trailblazer, and we’re building the technology to make it happen.

The Fourth Industrial Revolution is changing the way people work, using robotics, AI, the Internet of Things, and more. By making these innovations easier and more accessible, we’re helping create a future with greater opportunity and equality for all.
Salesforce is a customer relationship management solution that brings companies and customers together. It’s one integrated CRM platform that gives all your departments — including marketing, sales, commerce, and service — a single, shared view of every customer.

Percentage of Completion Method

Workshops for Professional Development

About eCommerce FAQs

Read All Posts By eCommerce FAQs