Knowledge Library · Component
Revenue & Recognition
What it is
How and when you record the income you earn, so revenue reflects what you have actually delivered, not just what you have invoiced or collected.
Why it matters
Getting revenue timing wrong distorts your profit, misleads decisions, and can create tax and compliance problems. For subscriptions, deposits, and projects it is especially easy to get wrong.
What makes it work
- Clear rules for when revenue is genuinely earned
- Consistent treatment of deposits, subscriptions, and milestones
- Sales, delivery, and finance working from the same view
- Records that can be traced and audited
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This material is provided for general education, based on FinPro's experience and methodology. It is not financial, legal, or tax advice, consult a qualified professional before acting on it.