Revenue Deferral (Revenue Recognition) is a crucial accounting practice that enables businesses to accurately reflect their financial performance over time, especially in industries where services are rendered, or products are delivered over extended periods. In this blog post, we’ll explore the step-by-step process of deferring revenue, highlighting essential tasks such as creating estimates, issuing sales and change order invoices (earned revenue), and managing deposit-retainers (unearned or deferred revenue). I recommend using QuickBooks Online Advanced with Excel Spreadsheet Sync for large projects. (In the case of inventory management and reporting Finale Inventory is a QuickBooks Online Solutions Partner) although there are other apps that integrate with QBO for Inventory and Ecommerce. Your records in QBO should match the records of Finale Inventory. Sync with Spreadsheet Sync, Finale or other apps only after you have run a BOM (Bill of Materials) report establishing your basis/historical transactions of Inventory, COGS and Sales, save records to My Accountant > Shared Documents.
Understanding Revenue Recognition Standards for Ecommerce and Store Front Retail
Updated: Feb 1
Want to read more?
Subscribe to bookkeepingbusinessonline.com to keep reading this exclusive post.