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Unearned Revenue: What it is and What it Means for Subscription Businesses

Stax

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.

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Understanding Deferred Revenue and Its Impact on Your SaaS Business

Subscription Flow

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.

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How We Run Finance & Operations with Two People at ChartMogul

Chart Mogul

With only 2 people on our Finance & Operations team, we have to be smart about how we use our resources. Finance & Operations. The Finance & Operations Team at ChartMogul. She’s been with ChartMogul for almost a year now and has helped us a lot to improve & document our reporting and other processes.

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What Is Unearned Revenue and How to Account for It

Baremetrics

You can often find yourself receiving money long before you provide agreed upon services or, conversely, providing services and then waiting for payment. But, what are the accounting ramifications of customers paying you before you render services? This puts you in the position of having “unearned revenue”.

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The SaaS Financial Model You’ll Actually Update (Updated 2019)

Baremetrics

So I’m providing an updated model for SaaS CEOs and founders looking to improve their financial model from a number-crunching exercise to an operational tool. Operating Model. The only required template is the Operating Model. These models feed or push data into the Operating Model. . Operating Model. Data Export.

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The top 5 subscription payment services: how to choose the best

ProfitWell

Scheduled payments, aka recurring billing. Scheduled payments have become a core form of revenue collection. Of course, recurring payments vary depending on the business. As the subscription universe continues to expand, you can expect to see even more subscription payment plans. What are subscription payments?

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Managing Deferred Revenue for SaaS Companies: Best Practices for Tracking, Reporting, and Analysis

SaaS Metrics

When a customer pays for a service upfront that won’t be delivered until later in the future, the company does receive the cash. But the revenue generated from the advance payment cannot be marked as earned — at least not until the service has been rendered. This unearned revenue is called deferred.