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. So, what differentiates ‘earned’ versus ‘unearned revenue’? Advance rent 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

Chart Mogul

JUNE 6, 2019

Yet, people lie at the heart of every software company, so taking good care of them is imperative for every SaaS business that wants to succeed. For us the software we use is the keystone that allows us to scale what we do. This is based not on MRR, but GAAP revenues. Excel is still the powerhouse in this category.

Payment Services 20

Payment Services Finance Payment Solutions SaaS Payments 20

Subscription Flow

SEPTEMBER 12, 2024

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. Revenue recognition determines when a certain company should record its revenue on its financial statements.

SaaS Payments 52

SaaS Payments Payment Services Payments Payment Features 52

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 !

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. The payment terms must be properly defined.

Payments 52

Payments Payment Methods Revenue Payment Services 52

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.

SaaS Payments 51

SaaS Payments Payments Payment Services Revenue 51