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Writer's pictureCallum Thompson

REVENUE RECOGNITION METHODS

Updated: Oct 3, 2023

In business, revenue is what makes the world go round.


It is one of the most crucial components in a financial statement because it measures the profitability of a SaaS business’ services. Preparing your company’s financial documents can be a very daunting task, so it’s crucial to understand the importance of sales revenue on an income statement so you can accurately report and forecast. In order for your business to actually consider revenue as earned, it needs to be tracked to a correct standard, or to use the more common term, ‘recognized’.


Recognizing your revenue with precision is crucial to your company’s financial performance; once you know the exact financial position of your business, you can manage o