GAAP compliant sync to QuickBooks Online
Automatic tracking of Stripe subscription changes to QuickBooks Online
No manual calculations in spreadsheets or third-party tools
Automatically build recognition schedules based on the Stripe data and track any subscription changes like refunds, cancellations, upgrades, multiple products, and more.
Recognize revenue on the income statement not when cash is received but when obligations are fulfilled.
Efficiently handle invoices with extended payment terms (Net 30, Net 60, etc.) to start recognizing revenue even if the payment is not there yet.
Unlock an automatically generated schedule for each subscription and get access to accurate reports with deferred revenue and recognized revenue on a monthly basis.
Handle all schedules and recognition in your home currency for clearer reporting, no matter the currency of the initial transaction. Stripe's conversion rates will be used to avoid discrepancies.
Manage and recognize discounts across the billing period according to your preferences. Multiple modes of discount processing available.
Our approach at Synder is to always protect your data. Thereβs no human in the loop for any of your Synder data, ever. We employ all the industry encryption standards and independent PEN testing is conducted regularly. We are GDPR, HIPAA, and CCPA compliant.
Benefit from an all-inclusive 15-day free trial following a discovery call where we'll discuss your business's unique needs and use-cases, as well as desired functionality.
Schedule a discovery callAccurate revenue recognition reporting
Automated subscription update tracking
All-inclusive 15-day free trial
Revenue recognition is the accounting rule that guides when and how a business records earnings on financial statements. Itβs about recognizing money as revenue only when services are provided to the customer, not when money is received in cash.This principle is important because it ensures that financial reports accurately reflect how much value your business has generated during a specific time period. By following proper revenue recognition practices, businesses not only provide an honest portrayal of their companiesβ financial health but also build trust with investors, analysts, and regulators.Β
Revenue should be recognized only when the services are provided. So if you have prepaid long-term subscriptions, which is a common SaaS case, proper revenue recognition should definitely be in place.
Not every business has to stick to the same rules when it comes to recognizing revenue. While it's a must for public companies in the US to follow the Generally Accepted Accounting Principles (GAAP), smaller private companies often have more flexibility.
For small businesses, especially those not aiming to go public, worrying about revenue recognition might not be a top priority. It all depends on things like how the business operates, where it's located, whether it's private or public, and its financial relationships.
If you're running an international business, you might have to deal with the International Financial Reporting Standards (IFRS), which can replace GAAP in certain countries. But even if it's not required, many companies still choose to follow IFRS guidelines voluntarily.
To recognize revenue under ASC 606 and IFRS 15, businesses follow five steps:
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Step 1: Identify the contract and get a clear picture of what's agreed upon with the customer.
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Step 2: Identify performance obligations to figure out exactly what goods or services you've promised to deliver.
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Step 3: Determine the total price expected from the transaction, including any adjustments.
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Step 4: Allocate the transaction price to each identified performance obligation.
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Step 5: Start recognizing revenue as you fulfill each performance obligation, indicating the transfer of goods or services to the customer.
The core principles of revenue recognition under GAAP are:
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1. Accrual accounting: Revenue should be recognized when a business has earned it, not just when they've received the money. It's about matching revenue with the work they've done, whether it's delivering goods or providing services.
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2. Completion of revenue-generating activity: Revenue is recognized only once the seller completes the obligation.
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3. Reasonable certainty of payment: Revenue is recognized only if thereβs certainty that the payment will be completed.
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4. Matching principle: Revenue and associated expenses go hand in hand and must be reported together.
Synder RevRec is a powerful software tailored to simplify revenue recognition procedures for businesses leveraging Stripe subscriptions. This module guarantees adherence to GAAP standards and addresses specific regulatory demands like IFRS 15 and ASC 606, catering particularly to the needs of SaaS companies.
Synder RevRec offers three methods of SaaS revenue recognition:
Here are two ways Synder RevRec recognizes discounts for correct revenue recognition:
1. Recognizing discounted totals: In this setup, a default discount product is mapped, integrated with QuickBooks Online, and linked to a deferred revenue account. Then, the discount is recorded in the income account specified in Synder settings. This automatically includes the default discount line item in invoices containing recorded discounts.
2.Recognizing gross and discount: This setup involves mapping individual discounts originating from Stripe to specific discount products in QuickBooks Online. These QBO discount products are then linked to deferred revenue accounts for accounting within QuickBooks Online and recorded in the income account in Synder settings. Each invoice accurately reflects individual discount items based on the established mapping.