SaaSOptics

MARCH 22, 2022

Revenue accrual is a practice that came about to help companies abide by GAAP (generally accepted accounting principles) standards and compliance. Two in particular: revenue recognition and revenue matching. How Do You Calculate Revenue Accrual? The Evil Twin of Revenue Accrual: Deferred Revenue.

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Subscription Flow

SEPTEMBER 18, 2024

Accrual accounting states that revenue must be counted when it is earned, rather than when payment is received at your end. Cash is not equivalent to revenue. Revenue is earned only when a company fulfills its obligations toward its customer. The payment terms must be properly defined.

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Subscription Flow

SEPTEMBER 12, 2024

Simply put, revenue recognition pertains to the notion that a company’s revenue is generated or “earned” when it has fulfilled its obligation to its customer. This is in stark contrast with the traditional cash-based accounting which counts revenue at the time of the sale, or when the payment is received by the company.

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Chart Mogul

OCTOBER 27, 2017

There are a set of rules and guidelines focused around how businesses calculate and recognize revenue, and if you report earnings to investors or other business stakeholders, they’ll want to see this. Revenue recognition is a critical piece of accounting for any business, and compliance with official standards is not optional !

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Chart Mogul

DECEMBER 5, 2018

Income statement — reflects the results of a period by showing revenue and expenses a company incurred. Recognized Revenue — commonly referred to as just “revenue” and reflected in the income statement. Payments that fulfill five criteria (see below) can be considered recognized revenue.

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ProfitWell

JULY 8, 2020

These are the laws as of 2020, but you should always talk to a tax professional as the final word in sales tax & compliance issues. Downloadable software A more common delivery method for software in the modern era, downloadable software, has a different set of tax rules in some localities than its physical media counterpart.

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Stax

JANUARY 23, 2024

Most small business owners hunting for cloud accounting software will find themselves trying to choose between the two most popular names: Xero and QuickBooks Online. Examining reviews of Xero vs QuickBooks Online can often lead to more confusion. Both are comprehensive tools that tick all the foundational boxes.

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