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Why Subscription-Based Models Need Specialized Accounting

by jess
Published: July 7, 2025 (1 week ago)
Category
Business
Link
Accountant for software house
Unlike traditional sales, subscription models involve: Recurring billing cycles (monthly, quarterly, annually) Deferred revenue recognition Customer churn and lifetime value tracking Tiered pricing and usage-based billing Free trials and promotional discounts These elements make revenue forecasting and compliance more intricate than in other industries.

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