Glossary

Revenue Recognition

Revenue recognition is the rule for when a sale becomes revenue.

Revenue recognition is the rule for when a sale becomes revenue. The contract decides it, not the invoice date and not the day the cash arrives. A usage contract, a subscription, and a project billed up front each earn revenue on a different schedule.

Related terms

Deferred Revenue

Deferred revenue is cash a company has collected for work it has not yet delivered.

Month-End Close

A month-end close turns a month of activity into statements the company can use.

Related practice

Outsourced Bookkeeping

Monthly close, reconciliations, and reporting.

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