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How To Calculate Deferred Revenue

Deferred revenue is a important accounting concept for SaaS companies who have long term agreements such as annual and multi-year subscriptions. We will explain why and how to calculate deferred revenue.

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Earned vs. Unearned Revenue

What is the difference between earned and unearned revenue? When using the accrual basis accounting method, revenue must be recorded as it is earned regardless of when payment is received.

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