I've outsourced accounting including AP, AR, Rev Rec, etc. I have an unbilled revenue problem, where my accountant won't send invoices unless we have a PO! This is a problem because even though I write SOWs to say that we will send an invoice when specific things happen, in practice we don't!
My accountant says it's best practice to avoid issues where some information may be wrong or the customer doesn't accept it, but in my mind no customer will ever pay if we don't send an invoice and even if some reject it because they haven't sent a PO, not all will and I feel I'm still legally owed reimbursement based on the SOW. If I never send an invoice my customer legally owes me nothing!
Am I wrong? I'm not an accountant myself so I defer to her, but is it really a bad idea to send invoices if I don't have a PO yet? (Or an affidavit from the customer saying they don't require POs)
EDIT: Based on the comment I want to add: I agree that I am owed the money regardless of whether there is a PO or even whether or not I invoice. However my SOWs state that the customer must pay within x days of receiving the invoice, so the clock never starts if I don't send an invoice. Also I agree it's a risk to start work without a PO but I don't feel that's an option (and my accountant can't stop me) but many customers just really drag their feet on getting me a PO. What I'd like to do in those cases is submit an invoice to get the clock started so that whenever I do finally get the PO I don't have to wait another 120 days.