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

Stax

When can revenue NOT be counted as revenue? 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.

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The Top 10 Important Finance Mistakes First Time Founders Make

SaaStr

Was it misunderstanding bookings vs. ARR vs. GAAP revenue, was that the issue? It was too big a flag for a company at the edge of where I like to invest. With early revenue, you start thinking about churn and scalability of every aspect of the business, including product, infrastructure, customer support, sales and marketing.

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

Baremetrics

If you are new to bookkeeping, I recommend creating T accounts for all of your accounts, from your different assets and liabilities found on the balance sheet to the revenue and expenses found on the profit and loss statement (also called the income statement). Then, the two involved accounts are your cash account and your revenue account.