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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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The Top 10 Important Finance Mistakes First Time Founders Make

SaaStr

It was too big a flag for a company at the edge of where I like to invest. Advice: Sooner or later, you will have to know both booking and revenue numbers, and the difference between them. Not doing so may cost you in a lower valuation, less investment, or even losing an interested buyer or investor.

Finance 321
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What Are T Accounts and Why Do You Need Them?

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The general ledger and T accounts work as intermediaries between primary documents, such as invoices or receipts, and the financial statements used by financial management, including the balance sheet , statement of cash flows , and income statement. Then, the two involved accounts are your cash account and your revenue account.