Sometimes, an accountant refers work to other companies because, he is too busy. He gets paid ( a percentage or however agreed) for such a referral. But the actual work only gets done much later. Does this fall under ” selling before taking possession “.
Here, there are two situations. The first is where the customer knows that he is being referred to another company and he knows that i (accountant) am being compensated by that company for referring him to them. Such compensation at times is calculated at a percentage of the work or a flat rate. However, the company already pays me my money even before they attend to the work of the customer? Is that Correct?
The second situation, is where, there are no agreements between myself and other people/ companies. I simply refer the person to others. The person doesn’t know that I am going to get a commission for this referral nor do I know, nor do I even expect it. There were no agreements prior to this. Then, after the referral, the company or the person to whom such work was given, pays me a percentage. Here too, it is well before the actual work gets done.