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Understanding The Revenue Recognition Principle

Subscription Flow

If you are a business dealing with recurring revenue, for instance, in the form of recurring subscriptions, then following the revenue recognition principle is ideal for you. You can analyze your profits and losses more accurately since you won’t be counting revenue as soon as you receive a monetary transfer.

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SaaS Sales Tax and What You Need to Know [2020] | ProfitWell

ProfitWell

In this post, we'll go over what those rules are for the 21 states that have sales tax laws on the books that pertain to SaaS businesses and products. These are the laws as of 2020, but you should always talk to a tax professional as the final word in sales tax & compliance issues. How is a SaaS product/company defined in the US?