Oops! Something went wrong while submitting the form.
Get a Demo
See your data in HubiFi < 2 days
See 5 practical examples of revenue recognition for different business models. Understand how to apply revenue recognition rules with real-world scenarios.
As your business grows, so does your financial complexity. The simple cash-in, cash-out accounting that worked when you were starting out quickly becomes insufficient for providing a true picture of your performance. This is where a formal revenue recognition process becomes essential. It ensures your financial reporting is accurate, compliant, and scalable. For companies with high transaction volumes or complex contracts, manual tracking in spreadsheets isn't just inefficient—it's a liability. We’ll explore how to build a solid foundation for your financial operations, using specific examples of revenue recognition to illustrate how different business models should handle their accounting as they scale.
Think of revenue recognition as the official rulebook for counting your money. It’s an accounting principle that dictates exactly when and how your business should record its income. The core idea is simple: you recognize revenue when you’ve earned it by delivering a product or service, not necessarily when the cash lands in your bank account. This distinction is the foundation of accrual accounting and is crucial for getting an accurate picture of your company's financial health over time.
This principle, formally known as ASC 606, was created to ensure that companies across all industries report their earnings consistently. It prevents a business from, say, booking all the revenue from a year-long subscription in the first month. Instead, it requires you to spread that revenue out as you fulfill your promises to the customer. Following this standard gives investors, lenders, and your own leadership team a reliable, standardized view of your performance. It’s all about creating a clear and honest financial story that everyone can understand and trust. For high-volume businesses juggling thousands of transactions, getting this right is the bedrock of sustainable growth and accurate financial planning.
The ASC 606 standard breaks down revenue recognition into a clear, five-step process. This framework is your roadmap for moving from a signed deal to accurately reported income, no matter how complex the sale is.
Getting revenue recognition right is non-negotiable for a healthy business. It directly impacts your most important financial statements, including the income statement and balance sheet. Accurate reporting builds confidence with investors, partners, and lenders, showing them that your business is on solid ground and that its financials are trustworthy. It’s also a matter of compliance—getting it wrong can lead to restated financials, serious penalties, and legal trouble.
Beyond just following the rules, proper revenue recognition gives you a true understanding of your company’s performance. When your data is accurate, you can make smarter strategic decisions about budgeting, hiring, and growth. Incorrect reporting can mask problems or create a false sense of security, ultimately hurting your business's reputation and financial stability. This is why many businesses automate the process to ensure accuracy and close their books faster.
At the heart of modern accounting is a five-step framework that guides how and when you can record revenue. This model, established by standards like ASC 606, creates a consistent approach for businesses everywhere, whether you're selling software subscriptions or handmade goods. Think of it as a universal language for financial reporting. Following these principles ensures your financial statements accurately reflect your company's performance, giving investors, lenders, and your own team a clear and reliable picture of your financial health.
This framework isn't just about following rules; it's about telling the true story of your business's earnings. Each step builds on the last, moving from identifying the initial agreement with a customer to finally recognizing the revenue once you've delivered on your promises. Getting this right is fundamental to accurate financial reporting and strategic decision-making. For a deeper look into financial operations, you can find more insights on our blog. By mastering these core principles, you can ensure your books are clean, compliant, and ready for any audit.
The first step is to confirm you have a contract with your customer. This doesn't always mean a lengthy document filled with legal jargon. A contract can be a written agreement, a verbal understanding, or implied through standard business practices. The key is that it establishes an enforceable agreement that outlines the terms of the sale. It should specify what you'll provide, what the customer will pay, and the rights of each party. This step serves as the foundation for the entire revenue recognition process, ensuring there’s a clear and mutual understanding before any money changes hands.
Once you have a contract, you need to identify exactly what you’ve promised to deliver. These promises are called "performance obligations." A performance obligation is a distinct good or service (or a bundle of them) that you'll provide to the customer. For example, if you sell a software subscription that includes installation and training, you likely have three separate performance obligations. Clearly defining each one is crucial because you'll recognize revenue as each specific obligation is fulfilled. This step forces you to break down your offerings into their core components.
Next, you need to figure out the total price of the deal. This is the amount of money you expect to receive in exchange for fulfilling your performance obligations. While it sounds simple, the transaction price can get complicated. It might include discounts, rebates, credits, or other variable considerations that could change the final amount. You have to estimate this value based on the terms of the contract and your past business experience. This step is all about calculating the total value of the contract before you start allocating it.
After determining the total transaction price, you have to divide it among the different performance obligations you identified earlier. The price should be allocated based on the standalone selling price of each distinct good or service—that is, what you would charge for each item if you sold it separately. This ensures that the revenue you recognize for each part of the deal accurately reflects its individual value. For contracts with multiple deliverables, this step is essential for recognizing revenue correctly over the life of the contract.
The final step is to actually record the revenue. This happens when—and only when—you satisfy a performance obligation by transferring the promised good or service to the customer. "Transferring control" means the customer can now direct the use of and obtain the benefits from that item. Revenue can be recognized at a single point in time (like when a product is delivered) or over time (like with a monthly service). This is where everything comes together, and your accounting system reflects the value you've delivered. Seamless integrations with your existing financial software can make this final step automatic and error-free.
Once you have the five core principles down, the next step is to apply them. The way you recognize revenue depends entirely on how you deliver value to your customer. Is it a one-time product sale, an ongoing subscription, or a massive, multi-year project? Each scenario requires a different approach to timing. Getting this right is crucial for accurate financial reporting and is a cornerstone of ASC 606 compliance.
Choosing the right method ensures your financial statements reflect the true economic reality of your business. For example, recognizing all the revenue from a year-long subscription in the first month would inflate your short-term performance and create major reporting headaches down the line. The goal is to match the revenue you record with the value you’ve actually delivered in that period. Let’s walk through the most common methods you’ll encounter and see which one fits your business model. Understanding these approaches will help you maintain accurate books and make smarter financial decisions.
This is the most straightforward method and the one you’re likely most familiar with. You recognize revenue at the specific moment the customer gains control of the product or service. Think of a customer buying a coffee, a book from your online store, or a piece of furniture. The transaction is complete, the item is in their hands (or on its way), and you’ve fulfilled your end of the deal.
For these types of one-and-done sales, the performance obligation is met instantly. You record the full sale price as revenue right then and there. There’s no need to spread it out over time because the value has been completely transferred. This method is typical for retail, ecommerce, and any business selling physical goods directly to consumers.
What if your service is delivered continuously? For businesses with subscription models, like SaaS companies or monthly service providers, revenue is recognized over time. If a customer pays $1,200 for an annual software subscription, you don’t recognize the full amount upfront. Instead, you’d recognize $100 each month for the entire year of the contract.
This method accurately reflects the ongoing nature of your performance obligation. You’re providing continuous access and value, so the revenue should be recorded in parallel. This approach gives a much more stable and realistic view of your company’s financial health. Managing this for thousands of customers requires powerful automated revenue recognition to keep the books straight without manual effort.
For businesses involved in long-term projects, like construction or large-scale consulting engagements, the percentage of completion method is essential. Instead of waiting until the entire project is finished to recognize revenue, you recognize it in stages, based on the progress you’ve made. This could be measured by costs incurred, labor hours worked, or units produced.
Imagine you have a two-year, $2 million construction project. If you complete 30% of the work in the first year, you can recognize $600,000 in revenue for that year. This method provides a more accurate, real-time picture of your financial performance on long-term contracts, preventing massive revenue spikes at the end of a project and smoothing out your financial reporting.
Similar to the percentage of completion method, the milestone method is perfect for project-based work where progress can be tied to specific, verifiable achievements. In this approach, you recognize portions of the total transaction price as you hit predefined milestones outlined in the customer contract.
For example, a software development firm might recognize 25% of the project revenue after completing the initial design phase, 50% after delivering a working beta, and the final 25% upon final launch. Each milestone represents a distinct point where a significant part of the value has been delivered to the customer. This method is great for keeping revenue aligned with tangible progress and is commonly used in professional services, consulting, and creative industries.
In a usage-based model, the customer pays based on how much they consume a service—think data usage from a telecom provider or API calls from a software platform. With this method, revenue is recognized as the customer uses the service, not when they prepay or are billed. If a customer prepays $500 for cloud computing credits, you only recognize revenue as they actually use those credits.
This model directly ties the revenue you record to the value the customer is actively receiving. It requires meticulous data tracking to monitor consumption accurately, which can be a major challenge for high-volume businesses. Having the right systems in place to connect usage data with your financial software is key to making this method work seamlessly.
How you recognize revenue depends heavily on what you sell and how you sell it. The core principles are the same for everyone, but their application can look quite different from one industry to the next. Let’s walk through a few common examples to see how these rules play out in the real world. Understanding your industry’s specific model is the first step toward getting your financial reporting right.
If you run a SaaS business, you’re likely dealing with subscription payments. Let's say a customer pays you $12,000 upfront for an annual subscription. It’s tempting to count that full amount as revenue right away, but that wouldn’t be accurate. Instead, you must recognize that revenue over the 12-month service period. This means you’d record $1,000 in revenue each month. This approach properly matches the revenue you earn with the service you provide over time. Getting this right is essential for a clear picture of your company’s financial health and for maintaining ASC 606 compliance.
For businesses that manage large, long-term projects like construction, revenue is typically recognized as the work gets done. Imagine you have a $1 million contract to build a commercial property. You wouldn't wait until the entire project is finished to recognize the revenue. Instead, you use a method like the percentage-of-completion. If you determine that 40% of the project is complete based on milestones or costs incurred, you can recognize $400,000 in revenue. This method provides a more accurate, ongoing view of your financial performance throughout the life of a long project, which is something investors and stakeholders appreciate.
In professional services, like consulting or legal work, revenue is recognized as you deliver the service. Your contract might state you’ll provide 100 hours of consulting work. You earn the revenue as you complete those hours, not when the client pays the invoice. So, if you’ve delivered 50 hours of work, you can recognize 50% of the contract's value as revenue, even if the payment hasn't hit your bank account yet. This is a direct application of the principle that revenue should be recorded when it's earned. HubiFi’s solutions can help you automate this tracking and ensure your financials are always up to date.
In manufacturing and retail, the key moment for revenue recognition is when control of the product transfers to the customer. This is usually at the point of delivery. For example, if a customer buys a new appliance in January, pays for it in February, but you don't deliver it until March, you must record the revenue in March. The sale isn't complete until the customer has the item in their possession. This is a "point in time" recognition event, and it’s crucial for businesses managing physical inventory and complex supply chains to get the timing right.
Telecom and utility companies operate on a subscription-based model, much like SaaS businesses. When a customer pays for a year of internet service upfront, that money is initially recorded as deferred revenue. The company can't recognize the full payment immediately because the service hasn't been fully delivered yet. Instead, the revenue is recognized in equal increments over the 12-month subscription period. This ensures that the company's financial statements accurately reflect the services it is providing each month. You can schedule a demo to see how HubiFi helps high-volume businesses manage this process seamlessly.
The way you make money directly shapes how you account for it. Your business model isn't just a sales strategy; it's the blueprint for your revenue recognition process. Whether you sell one-time products, annual subscriptions, or complex long-term services, each model has its own rules for when you can officially count your earnings. This is where the five-step framework of ASC 606 moves from theory to practice, guiding you on how to handle the specific transactions your business manages every day.
Understanding this connection is crucial for maintaining accurate financial statements. A subscription company can't book a full year's payment upfront, just as a construction firm can't wait until a building is finished to recognize any revenue at all. Getting this right ensures your financials reflect the true health of your business, keeps you compliant, and gives you the clarity needed to make smart decisions. The following examples show how different business models put the principles of revenue recognition into action.
If your business runs on subscriptions, you’re delivering value over a set period, and your revenue recognition must mirror that timeline. Imagine a customer pays your SaaS company $12,000 upfront for an annual plan. Even though the cash is in your bank account, you haven't earned it all yet. Your performance obligation is to provide the service for 12 months.
Under the revenue recognition principle, you would recognize this revenue evenly over the subscription term. In this case, you’d record $1,000 in revenue each month for a year. This approach accurately matches the revenue you earn with the service you deliver, giving a clearer picture of your company's monthly performance. Properly managing this deferred revenue is a cornerstone of subscription accounting and requires robust automated revenue recognition systems.
One-time sales are the most straightforward scenario for revenue recognition. This model applies to businesses that sell distinct products or services where the value is transferred to the customer at a single point in time. Think of a company selling a software license that the customer downloads and owns immediately, or a retail store selling a physical product.
If you sell a software package for $5,000 and the customer receives access to it right away, you can recognize the full $5,000 as revenue in that same accounting period. The performance obligation—delivering the software—is completed at the moment of the transaction. There are no future services to provide, so the revenue is earned and can be recorded immediately.
For businesses with usage-based or consumption models, revenue is recognized as the customer uses the service. This is common for cloud computing providers, utility companies, and some data services where billing is based on consumption, like gigabytes used or API calls made. The key here is that the revenue directly correlates with the customer's activity during a specific period.
For example, if you charge clients based on data storage, you can't recognize revenue until they actually use that storage. At the end of each month, you would measure their consumption and recognize the corresponding amount as revenue. This model requires precise data tracking to ensure accuracy, which is why seamless integrations with your data sources are so important for billing and financial reporting.
When your business provides services over the life of a contract, you recognize revenue as that work is completed. This is typical for consulting firms, marketing agencies, and other professional services that bill for projects or hours. The contract outlines the performance obligations, and revenue is recorded as you fulfill them.
Let's say a consulting firm signs a $30,000 contract to deliver 200 hours of advisory services. The revenue isn't recognized all at once when the contract is signed. Instead, it's recognized as the hours are delivered. If the firm provides 50 hours of consulting in the first month, it can recognize $7,500 (50 hours / 200 hours * $30,000) in revenue for that period. This method accurately reflects the value provided to the customer over time.
Many businesses don't fit neatly into one box. Hybrid models often involve a mix of products, services, and ongoing support, which is common in large-scale projects like construction or complex enterprise software installations. In these cases, revenue is typically recognized as milestones are achieved or based on the percentage of the project that has been completed.
For instance, a company building a custom software solution for a client on a $1 million contract would recognize revenue in stages. If they complete 40% of the project milestones in the first quarter, they can recognize $400,000 in revenue. This approach, known as the percentage-of-completion method, provides a realistic view of financial progress on long-term projects. Handling these complex scenarios requires deep expertise, something the team at HubiFi is built on.
Revenue recognition would be simple if every sale was a straightforward, one-time transaction. But modern business models are rarely that neat. You might sell a subscription that bundles software with premium support, or offer volume rebates that aren't calculated until the end of the quarter. These situations are where revenue recognition gets tricky, and where getting it right is crucial for accurate financial reporting and ASC 606 compliance. For high-volume businesses, the complexity multiplies quickly, turning what seems like a simple accounting rule into a major operational challenge.
Handling these scenarios correctly isn't just about following the rules; it's about having a true understanding of your company's financial health. Misinterpreting revenue from complex contracts can lead to overstated profits, compliance issues during an audit, and poor strategic decisions based on faulty data. Imagine planning your next big investment based on revenue that hasn't truly been earned yet. Below, we’ll walk through some of the most common complex scenarios you might face. We'll cover everything from contracts with multiple deliverables to the accounting for customer returns, giving you a clear framework for managing each one.
Many businesses bundle products and services into a single contract. Think of a telecom company selling a phone (hardware), a monthly data plan (service), and an insurance policy. Under ASC 606, you can't just recognize the full contract value upfront. Instead, you must identify each distinct item as a "performance obligation." The next step is to allocate the total transaction price across each of these obligations based on their standalone selling prices—what you’d charge for each item separately. This ensures you recognize revenue for each part only as it's delivered to the customer, giving a more accurate, timeline-based view of your earnings.
Does your pricing change based on discounts, rebates, or performance bonuses? This is known as "variable consideration," and it adds a layer of estimation to revenue recognition. Because the final transaction price isn't fixed, you have to estimate the amount of revenue you expect to ultimately receive. For example, if you offer a rebate to customers who reach a certain purchase volume, you must estimate how many will qualify and adjust your recognized revenue accordingly. This requires solid historical data and careful judgment to avoid overstating your income before the final price is known and the cash is in the bank.
Contracts aren't always set in stone. A client might want to add new services, reduce the scope of a project, or extend a subscription term. When a contract is modified, you have to determine how to account for the change. Is it a simple adjustment to the existing contract, or does it create an entirely new one with new performance obligations? The answer affects how you recognize any remaining revenue from the original agreement and how you account for the new terms. Documenting these changes and their accounting treatment is essential for maintaining a clear audit trail and ensuring your financials remain accurate through the customer lifecycle.
If you sell products, you likely deal with returns. The revenue recognition principle requires you to account for sales you anticipate will be reversed. You can't recognize revenue for goods you expect customers to send back. Instead, you need to estimate a reasonable amount for returns based on past experience and other relevant factors. This estimate is recorded as a refund liability, and the corresponding amount is excluded from your recognized revenue. This gives a more accurate picture of your net sales and prevents you from counting income that you'll likely have to give back later, keeping your financial statements reliable.
For businesses in software, media, or intellectual property, revenue often comes from licensing and royalties rather than direct sales. A software-as-a-service (SaaS) company, for instance, grants customers a license to use its platform over a subscription term. In this case, revenue is typically recognized straight-line over the life of the license as the customer receives value continuously. Similarly, a music publisher recognizes royalty revenue as songs are streamed, not when the initial licensing agreement is signed. You can find more insights on industry-specific challenges like this on our blog, but the core principle is always to align revenue recognition with when the value is delivered.
If you’ve ever spent hours wrestling with spreadsheets to close the books, you know that manual revenue recognition can be a major headache. As your business grows and contracts become more complex, the risk of human error and compliance missteps increases. This is where technology steps in. The right tools don't just speed up the process; they transform it, bringing accuracy, consistency, and clarity to your financials.
By automating calculations, integrating your various software systems, and providing real-time insights, technology frees up your finance team from tedious data entry. Instead of getting bogged down in the "how," they can focus on the "what's next"—analyzing trends, advising on strategy, and helping the business grow. Let's look at a few specific ways technology makes revenue recognition a much smoother process.
At its core, an automated recognition system is designed to handle the heavy lifting for you. Instead of manually applying the five-step revenue recognition model to every single contract, the software does it automatically. It can identify performance obligations, allocate transaction prices, and recognize revenue as each milestone is met, all based on the rules you set. This consistency is crucial for maintaining compliance with standards like ASC 606.
Using an Automated Revenue Recognition solution means your team can step away from the time-consuming task of managing complex calculations. This not only reduces the chance of errors but also ensures that your revenue is recognized in a timely and systematic way, giving you a more accurate picture of your company's financial health.
Most businesses operate with a collection of different software—a CRM for sales, a billing platform for invoices, and an ERP for accounting. Without integration, your team is stuck manually transferring data between these systems, a process that’s both inefficient and prone to error. Getting your financial software to talk to each other is a game-changer.
When your systems are connected, data flows seamlessly from one to the next, creating a single source of truth. A sales contract closed in your CRM can automatically trigger the correct revenue schedule in your accounting platform. This eliminates data silos and ensures everyone is working with the same, up-to-date information. HubiFi offers a range of integrations to connect the tools you already use, making this unified view a reality.
Meeting accounting standards like ASC 606 isn't optional, and auditors will want to see your work. Technology provides the framework for solid compliance and documentation. Modern revenue recognition tools are built with these complex rules in mind, helping you manage intricate agreements with multiple deliverables or variable pricing without missing a beat.
These systems also create a clear and accessible audit trail. Every calculation, adjustment, and journal entry is logged automatically, so when it’s time for an audit, you have all the documentation you need right at your fingertips. This not only makes audits less stressful but also demonstrates a strong commitment to financial integrity, building trust with investors and stakeholders.
Relying on spreadsheets for revenue recognition is like building a house on a shaky foundation. A single typo, a broken formula, or an outdated version of a file can throw off your entire financial reporting. These manual methods often lead to inaccuracies that can cause major headaches down the line, from failed audits to the need for financial restatements.
Automated systems dramatically improve data accuracy by minimizing human intervention. By pulling information directly from your integrated CRM, billing, and ERP systems, the software ensures that the data it uses is correct and consistent. This reliability is the bedrock of sound financial reporting and gives you the confidence to make strategic decisions based on numbers you can trust. You can find more insights on building a data-driven finance function on our blog.
With manual processes, you often don't have a clear view of your revenue until the books are closed at the end of the month or quarter. This lag means you're always looking in the rearview mirror. Technology changes that by providing real-time visibility into your financial performance.
With dashboards and automated reports, you can track revenue as it's recognized, not weeks later. This allows you to monitor key performance indicators, compare results against forecasts, and spot trends as they emerge. Having this up-to-the-minute information empowers you to make faster, more informed decisions for your business. If you're curious to see what this looks like in action, you can schedule a demo to see how our platform provides instant clarity.
Getting revenue recognition right isn't just about checking a compliance box—it's about building a financially sound business. When you have a clear and consistent process, you create a reliable picture of your company's health. This builds trust with investors, simplifies audits, and gives you the accurate data you need to make smart decisions. Adopting these best practices will help you streamline your operations, reduce errors, and set your business up for sustainable growth. It’s about creating a system that works for you, not against you, so you can focus on what you do best.
Think of documentation as the story of your revenue. Every contract, invoice, and customer agreement is a chapter. Keeping detailed records is essential for proving how and when you earned your revenue. Accurate reporting isn't just for passing audits; it builds confidence with investors and stakeholders by showing that your financials are transparent and trustworthy. Your documentation should clearly outline each of the five steps of revenue recognition for every contract, from identifying performance obligations to the final recognition of revenue. This clarity protects your business and provides a solid foundation for financial analysis.
Internal controls are the guardrails that keep your revenue recognition process on track. These are the checks and balances you put in place to ensure every transaction is recorded accurately and consistently according to accounting standards. For businesses dealing with complex contracts, like those with rebates or multiple deliverables, strong controls are non-negotiable. They help prevent costly errors and ensure you’re always compliant with standards like ASC 606. Establishing these controls demonstrates a commitment to financial integrity and operational excellence, which is a core part of building a resilient company.
Your financial data shouldn't live on separate islands. When your CRM, billing platform, and accounting software don't talk to each other, you're left with manual data entry and a high risk of errors. Getting accurate data from different systems is a common struggle, but it doesn't have to be yours. Integrating your tech stack creates a single source of truth, ensuring that everyone is working with the same numbers. HubiFi offers seamless integrations with the tools you already use, eliminating data silos and giving you a complete, real-time view of your revenue.
Once your systems are integrated, the next step is automation. Manually tracking performance obligations and calculating revenue for every contract is time-consuming and prone to human error, especially as your business scales. Automation tools can handle these complex calculations for you, applying the correct revenue recognition rules consistently across the board. This not only saves your team countless hours but also dramatically improves accuracy. By automating your process, you can close your books faster, reduce compliance risks, and free up your team to focus on strategic analysis instead of manual data wrangling.
Accounting standards can and do change. The introduction of ASC 606 by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) significantly shifted how companies recognize revenue. Staying current with these regulations is crucial for avoiding penalties and ensuring your financial statements are accurate. This doesn't mean you need to become a full-time accounting scholar. Partnering with experts or using software designed for compliance can help you stay ahead of any changes. Keeping compliance top of mind ensures your business remains on solid financial footing, no matter how the rules evolve.
Why can’t I just recognize revenue when my customer pays me? This is a great question because it gets to the heart of the entire principle. Recognizing revenue only when cash arrives is called cash-basis accounting, which is simple but can give you a misleading view of your business's performance. The modern standard, accrual accounting, requires you to recognize revenue when you’ve earned it by delivering your product or service. This method provides a much more accurate and stable picture of your financial health over a specific period, regardless of when invoices are actually paid.
My business is small and my sales are simple. Do I really need to follow these complex rules? Even for small businesses, following the core principles of revenue recognition is a smart practice. It establishes good financial habits from the start and ensures your books are accurate and reliable as you grow. While you might not face the same complexities as a large enterprise, the fundamental rule of recognizing revenue when it's earned still applies. Getting this right early on makes it much easier to secure loans, attract investors, and have a clear understanding of your own performance down the road.
What's the most common mistake you see businesses make with revenue recognition? A frequent misstep is booking the full value of a long-term contract upfront. This is especially common with annual subscriptions or multi-month projects. While it's exciting to see a large payment come in, that cash hasn't been fully earned yet. This inflates your short-term performance and creates major compliance headaches later. The key is to spread that revenue out over the period you're actually delivering the service.
How do I know when it's time to automate this process? You'll know it's time to automate when you find your team spending more time managing spreadsheets than analyzing the data in them. If closing the books each month feels like a frantic, error-prone scramble, or if you're struggling to keep up with complex contracts and subscriptions, that's a clear sign. Automation isn't just for large corporations; it's for any business that wants to improve accuracy, save time, and get a real-time view of its financial health.
How does getting revenue recognition wrong actually impact my business? Getting it wrong can have serious consequences beyond just messy books. Inaccurate financial statements can lead to poor strategic decisions, like over-investing based on inflated revenue numbers. It can also create major problems during an audit, potentially resulting in financial restatements and penalties. Most importantly, it damages trust with investors, lenders, and partners who rely on your financial data to be a true reflection of your company's performance.
Former Root, EVP of Finance/Data at multiple FinTech startups
Jason Kyle Berwanger: An accomplished two-time entrepreneur, polyglot in finance, data & tech with 15 years of expertise. Builder, practitioner, leader—pioneering multiple ERP implementations and data solutions. Catalyst behind a 6% gross margin improvement with a sub-90-day IPO at Root insurance, powered by his vision & platform. Having held virtually every role from accountant to finance systems to finance exec, he brings a rare and noteworthy perspective in rethinking the finance tooling landscape.