Billings

The amounts a company invoices customers in a period, whether or not the work behind them has been delivered or the cash collected.

Checked 9 Oct 2026 · 1 source

What is meant by billings?

Billings are the amounts a company invoices customers in a period, whether or not the work behind them has been delivered or the cash collected. Billings sit between bookings and cash. A customer billed a full year in advance creates billings well before revenue, while a project billed at milestones can run ahead of or behind the work.

Why it matters to a revenue leader

Billings drive cash, and cash pays the crews who deliver the work. A revenue leader who sells annual prepaid agreements improves billings and cash even when revenue looks flat. The contract terms your sellers negotiate, such as billing frequency, milestones and retainage, decide when billings land. That makes billing terms a commercial decision as much as a finance one.

Example

Fictitious numbers

An environmental services company signs a three-year contract worth $240,000, billed $80,000 at the start of each year. Bookings are $240,000 in the month it signs. Billings are $80,000 that month. Revenue is recognized as the work is done, about $6,667 a month.

The question to ask

"Which of our standard contract terms delay billing, and what would it take to bill earlier?"

Sources

  1. Bookings vs Annual Recurring Revenue: Understanding Key Financial Metrics (Corporate Finance Institute) checked 9 Oct 2026

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