Revenue recognition is the process of recovering, organizing, and recording payments and billing, recording, tracking and collecting and other receivables on client accounts. Revenue Accounting provides essential tools for determining and tracking revenue.
In business, revenue is the income that an enterprise actually receives from its activities, especially to the sale of products and / or services. Consistent revenue growth is essential for making the company attractive to investors for publicly traded shares. However, revenue is less important than the profits of investors. The "top row" & # 39; is also used to display the concept of revenue, & # 39; because the revenue of the company's income statement is usually at the top and all other costs and costs below it.
Revenue Recognition & # 39; the United States General Accounting Principles (GAAP) have four major principles. The other three are the "historical cost principle", the "fitting principle and the entire disclosure principle."
The main process of accounting for revenue is data collection, preparation, accounting, auditing, reconciliation, executive reports and interline billing A good example of this is the system of clearing the airline's revenue, which aims to provide passenger airlines with a computerized solution to meet the needs of the revenue accounting departments
Accounting revenue has now become more complex, and auditors look at financial records in fine detail Unfortunately, many accounting systems do not handle complicated revenue streams because they are designed for simple revenue streamlining Automated revenue streams can be automated with software packages Helping you get more business models, entities and contracts
Source by sbobet