Why is Unearned Revenue a Liability?
Deferred revenue is a liability because it reflects revenue that hasn’t yet been earned and it represents products or services that are owed to a customer. It’s recognized proportionally as revenue on the income statement as the product or service is delivered over time. Unearned revenue is most common among companies selling subscription-based products or […]
Wave Accounting Review 2023
We don’t guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services. With plans starting at $15 a month, FreshBooks is well-suited for freelancers, solopreneurs, and small-business owners alike. We spend hours researching and evaluating each accounting software system we review at Merchant […]
Degree of Operating Leverage: Definition, Formula & Calculation
Variable costs vary with production levels, such as raw materials and labor. Fixed costs remain constant regardless of production levels, such as rent and insurance. A company with high financial leverage is riskier because it can struggle to make interest payments if sales fall. This information shows that at the present level of operating sales […]
Cash Flow Statement Software & Free Template
Remember, your cash flow forecast should be flexible and adaptable. Ensure data from all sources (budgets, statements, historical records) is aligned and comparable. The Profit & Loss (P&L) Statement differs from the Statement of Cash Flow in that it tracks profitability, while the Statement of Cash Flow (or any other format) tracks cash movement. It […]
Revenue Backlog: How to Define, Calculate, and Help Your SaaS Business?
Regular review of the backlog is often called “backlog grooming” in agile circles (some use the term backlog refinement). A product backlog is a prioritized list of work for the development team that is derived from the product roadmap and its requirements. The most important items are shown at the top of the product backlog […]