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

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Xero vs QuickBooks Online: Which Accounting Software is Best for Your Business?

Stax

The former will deal with purchase orders and ringing up sales at the register, while the latter will need capabilities related to invoicing and managing client records. If you’re self-employed and don’t need to send more than 20 invoices a year, $9 per month is a great value. Both solutions have this feature.