[Mike Kuller]

Has anyone else changed from an operating system software which recognizes revenue when it is billed (MestaMed) to one which recognizes revenue when the product is delivered (Brightree).

How did you handle having your "suspended billing" included in your A/R with the corresponding increase in your revenue and profit leading to additional income taxes - on your suspended billing.

I guess I'm looking for an accounting/bookkeeping answer. Help.

[lsologuren]

Under the accrual basis of accounting, revenue is recognized when the service are performed not when you get around to mailing the bills. This is a question for you accountants/tax preparer. Under Mesta, those "suspended billings" probably should have been recognized using adjusting journal entries into the general ledger. Now, you have a "catch up" of the revenue. In the end this is only a timing difference of which accounting period to report that revenue. Assuming that your "suspended billings" does not materially change from year to year, this is a one time occurence.