#revenue-recognition
Revenue Recognition
Revenue recognition principles and accounting standards
Swim School Bookkeeping: Deferred Revenue for Session Packs, Instructor Pay, and Pool Costs
A $400 session pack is a liability, not June revenue — swim school bookkeeping hinges on deferring prepaid lesson income, budgeting pool leases as fixed costs, and classifying certified instructors correctly. Covers franchise cost benchmarks ($95K–$3.75M), instructor pay of $19–$35/hour, USA Swimming fee pass-throughs, and a monthly close checklist.
Funeral Home and Cemetery Bookkeeping: How Pre-Need Trusts and Revenue Recognition Actually Work
Pre-need funeral contracts can span 40 years between payment and service, so GAAP defers the revenue as a liability until delivery — while cemetery plot sales are recognized immediately as real-estate-like transactions. A guide to state trusting percentages, perpetual care funds, and the bookkeeping separations that keep deathcare businesses compliant.
Gymnastics and Cheer Gym Bookkeeping: Getting Tuition, Team Fees, and Meet Travel Right
A $3,600 competition-team fee paid in August isn't August revenue — it's deferred revenue recognized monthly across the season. How gymnastics and cheer gyms should book team fees, classify coaches (1099 vs. W-2), depreciate spring floors and mats under Section 179, and budget meet travel.
Indoor Skate Park Bookkeeping: Why Three Revenue Streams Can Sink a Profitable Facility
An indoor skate park is three businesses in one — admissions with near-zero COGS, high-margin coaching, and pro shop retail carrying 55–70% cost of goods sold. This guide covers splitting the chart of accounts by stream, recognizing punch card and membership revenue under ASC 606, depreciating ramp systems over 5–7 years with Section 179, and building a margin-weighted break-even model against $25,000–$30,000 in monthly fixed costs.
Colorado's Psilocybin Healing Centers Just Watched Cannabis Get a Tax Break They Didn't
Cannabis got Section 280E relief when medical marijuana moved to Schedule III in April 2026, but Colorado's 34 licensed psilocybin healing centers are still fully subject to it. Here is how 280E limits deductions to COGS, why facilitator session labor is the contested cost category, and how to structure a chart of accounts, deferred revenue, and cash controls for a Schedule I business.
Cotton Gin Bookkeeping: Costing the Per-Bale Ginning Fee, Cottonseed Byproduct Revenue, and Module Truck Hauling
USDA's latest survey put average ginning cost at $49.31 per bale in 2022, up 106% in three years. This guide shows how a cotton gin should structure its books — unbundling the per-bale ginning fee into receiving, drying, pressing, and bagging cost centers, booking cottonseed (15–20% of per-bale gross revenue) as a separate product line, and breaking module truck hauling out as its own transportation charge.
Extended Warranty Revenue Isn't Yours Yet: Why ASC 606 Says You Can't Book It at the Point of Sale
ASC 606 treats a separately priced extended warranty as a distinct performance obligation, so a $150 three-year service contract is booked as unearned revenue and recognized at $4.17 per month over 36 months — not as sale revenue on day one. This guide explains the assurance-type vs. service-type distinction, the three standalone-selling-price allocation methods for bundled pricing, and the journal entries small retailers need.
The FTC's Caremark Settlement: What Cost-Plus Reimbursement Means for Independent Pharmacy Books
The FTC's July 2026 settlement with CVS Caremark requires a cost-plus reimbursement option, point-of-sale rebate pass-through, and delinked PBM fees. Here is how independent pharmacies should model the switch, track DIR clawbacks, and keep reimbursement data auditable.
FTC 2026 Clayton Act Section 8 Thresholds: When Interlocking Directorates Become Illegal for VC- and PE-Backed Boards
The FTC's 2026 Clayton Act Section 8 thresholds are $54,402,000 in capital, surplus, and undivided profits and $5,440,200 in competitive sales. With regulators now counting board observers, investment funds, and LLCs, here is a practical checklist for VC- and PE-backed boards to spot illegal interlocking directorates.
Helicopter Sightseeing Tour Bookkeeping: Part 91 vs. Part 135, Insurance Costs, and the 2029 Fleet Deadline
How a sightseeing helicopter operator's books differ from other small businesses — Part 91.147 vs. Part 135 certificates drive $5–25M liability premiums, helicopters depreciate over 5 years under MACRS only if business use stays above 50%, weather cancellations complicate ASC 606 deferred revenue, and NYC's December 2029 Stage 3 noise ban turns non-compliant airframes into an asset-impairment problem today.
Medical Billing Company Bookkeeping: Why the Money in Your Bank Account Isn't Your Revenue
Medical billing companies are agents under ASC 606: revenue is the 4–8% fee on collections, not the gross payments passing through. How to book pass-through cash as a liability, build a chart of accounts around fee income, and track clean-claim rate, denial rate, and days in A/R as leading indicators.
Bookkeeping for Medical Billing Services: How Claim Denials Hit Your Own Cash Flow
Initial claim denial rates reached 11.8% in 2026, and billing services paid 4–10% of collections absorb every denial in their own books. A practical guide to recognizing fee revenue when claims actually pay, tracking denial rework as a separate cost, segregating client trust funds, and building a chart of accounts for a contingent-fee business.