Stax

MAY 20, 2024

The concept of unearned revenue can easily trip up SaaS companies that offer subscription services and products on a recurring basis. Unlike when selling ordinary products, you cannot recognize the revenue earned from a subscription all at once. This is important for subscription businesses due to recurring advance payments.

Payment Features 167

Payment Features Payments Payment Services SaaS Payments 167

Subscription Flow

OCTOBER 4, 2024

Deferred revenue refers to the income that you have collected, but not yet earned. The GAAP (Generally Accepted Accounting Principles) issued by the FASB (Financial Accounting Standards Board), inform businesses when their revenue should be recognized. This is where the concept of deferred revenue comes in.

Deferred Revenue 52

Deferred Revenue Payments SaaS Payments Payment Services 52

SaaSOptics

MARCH 22, 2022

It’s a financial practice used in businesses with revenue timelines that would otherwise be delayed. Revenue accrual is commonplace in the service industry, because these projects can take months—or years—to complete. Revenue accrual is a crucial practice in situations like these. How Do You Calculate Revenue Accrual?

Payment Services 83

Payment Services Deferred Revenue SaaS Payments Payment Methods 83

Subscription Flow

SEPTEMBER 12, 2024

The idea that a company generates revenue at the time it receives cash is far outdated. Even more so for the businesses in the Software-as-a-Service industry. Instead, the accrual accounting principle known as “revenue recognition” is now under the spotlight. Why does the cash-based accounting lag behind?

SaaS Payments 52

SaaS Payments Payment Services Payments Payment Features 52

Chart Mogul

DECEMBER 5, 2018

In this week's lesson, we're tackling the tricky process of converting bookings into revenue — also known as revenue recognition. Repeat after me: cash is not revenue! For a SaaS or subscription business, revenue recognition can be complex, mainly because of the service-oriented nature of the product.

SaaS Payments 51

SaaS Payments Payments Payment Services Revenue 51

Chart Mogul

OCTOBER 27, 2017

ASC 606 and its sister standard IFRS 15 bring a set of structured guidelines for recognizing revenue -- here's what every SaaS business needs to know to meet the deadline and get compliant. Cash is not revenue. The new reporting framework applies to any situation where there is a contract for goods and services.

Payments 45

Payments SaaS Payments Payment Services Deferred Revenue 45

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. Does Revenue Recognition Resonate with You?

Payments 52

Payments Payment Methods Revenue Payment Services 52