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Revenue Recognition Software

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  • Revenue Recognition Software

    Hi, does anyone know of any 3rd party software that works with QuickBooks (currently using Premier 2020) to help with the revenue recognition problem? I am not looking for a complete billing system as I see there are plenty of those. Just something that will simply make the proper journal entries after an invoice is entered in QuickBooks. I found something called Prorata that appeared to be a good solution, but there were purchaed by Chargify and bundled into their software unfortunately. Any help would be greatly appreciated! Thanks and Happy Holidays!!!
    Nick Fuchs
    Tools4ever Inc
    www.tools4ever.com

  • #2
    Just out of curiosity, just what is "the revenue recognition problem" that QuickBooks cannot handle?

    Lorin Browning
    Lorin Browning, Ph. D.
    Fellow -- National Tax Practice Institute

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    • #3
      Could be transactions where revenue is received upfront but recognized over a period of time, maybe? So, you would have deferred revenue sitting on the books as a liability with a portion of it recognized monthly. Something like that, perhaps. If you have a large amount of transactions like this some automation via software may speed up the process of recording the transfer of deferred revenue to earned revenue. This can get pretty complex, IMO. Whether QB can perform the same functions, I don't know. This is a FASB standard that went into effect, generally, for 2018. My eyes glazed over trying to decipher it initially.

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      • #4
        Revenue Recognition, commonly referred to as rev rec or revenue rec, is an accounting principle and a process for reporting revenues by recognizing the monetary value of a transaction or contract over a period of time as the revenue is “earned.” The method of allocation and the period of time are determined by rules, ...

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