Invoiced Revenue (Billings Revenue)

Invoiced Revenue refers to the total amount billed to customers for services and memberships within a specific period, irrespective of whether the payments have been received or when the service has been delivered.

Although Invoiced revenue also includes all memberships, bookings, and additional services, it’s different from the Total revenue of the coworking or flex space due to differences in billing cycles and patterns.

What is the difference between Invoiced Revenue and Total Revenue?

As noted, invoiced revenue refers to the sum of all invoices issued to customers within a given month. These typically include Memberships Revenue, On-demand Revenue, and Additional Revenue; however, there’s a big difference.

Memberships, On-demand, and Additional Revenue are calculated as the total income generated for the service’s delivery period.

For example, July’s Membership revenue will be all active memberships in July, disregarding when they were billed in advance (at the end of the previous month or next month). Similarly, On-demand revenue for July will be the sum of all bookings within July, disregarding when they were billed. For example, these might be billed in August with the next monthly invoice for this customer.

On the other hand, the Invoiced Revenue for July will be the sum of all invoices issued within July, regardless of when these services were delivered.

As a result, the Total Revenue may often differ from the Invoiced Revenue for a specific month.

In summary

Invoiced revenue represents the total billing for various services and memberships, providing essential insights into the financial health and operational success of the business.

It includes all client charges, from regular membership fees to one-time service fees, helping operators track performance, manage cash flow, and make informed financial decisions.

Example

Imagine a coworking space with the following invoiced amounts for a month:

• Membership Fees: $50,000
• Office Rentals: $30,000
• Event Space Bookings: $10,000
• Additional Services: $5,000
• Day Passes: $2,000

The total invoiced revenue for the month would be: Total Invoiced Revenue=$50,000+$30,000+$10,000+$5,000+$2,000=$97,000.

Please note that some memberships or services might have been delivered in previous months or billed in advance for services that have not yet been delivered.