Work based revenue recognition

Summary:

We are looking for leading practice on revenue accruals for clients who have done work-based Project billing.

Our goal is to close on first day of the month. One of the client subsidiaries wants to recognize revenue based on work done till they actually invoice the client.  The subsidiary wants to wait till all the timesheets are approved for the month and then calculate the revenue accrual amount based on the hourly rate and number of hours.

However if we closed on first day of the month, some hours wouldn’t be captured. For e.g. 30th Apr 2025 was on Wednesday, so timesheet won’t be submitted until 2nd May 2025. So we would lose out on the  time from 28th to 30th Apr.