#revenue-recognition

Revenue Recognition

Revenue recognition principles and accounting standards

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July 20, 2026

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.

mike

revenue-recognitionaccountingsmall-business

July 20, 2026

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.

mike

healthcareantitrustsmall-business

July 20, 2026

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.

mike

compliancelegalstartup

July 20, 2026

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.

mike

bookkeepinginsurancedepreciation

July 20, 2026

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.

mike

bookkeepinghealthcarerevenue-recognition

July 20, 2026

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.

mike

healthcarebookkeepingsmall-business

July 20, 2026

New Jersey Legalizes Human Composting: Bookkeeping for a Natural Organic Reduction Facility

New Jersey's natural organic reduction law takes effect July 1, 2026, making it the 14th state to legalize human composting. The 45-day reduction cycle forces deferred-revenue treatment under ASC 606, unclaimed soil becomes a tracked inventory line, and NOR vessels need their own depreciation class — here's how funeral homes should set up the books.

mike

bookkeepingsmall-businesscompliance

July 20, 2026

Newsletter Sponsorship Revenue Recognition: Why a Verified CPC Payout Isn't Booked the Day the Ad Runs

Newsletter CPC ad networks like beehiiv verify clicks roughly 96 hours after send and pay out on the 20th of the following month — three different dates that create a real accrual-accounting gap most solo publishers book incorrectly.

mike

revenue-recognitionaccrual-accountingbookkeeping

July 20, 2026

Portable Restroom Rental Bookkeeping: Why the Same Fleet Makes Money Two Completely Different Ways

How portable restroom rental companies should account for one fleet serving two revenue models — monthly construction contracts ($100–$300/unit) recognized ratably under ASC 606 versus lump-sum event rentals with deferred deposits — plus 2026 Section 179 expensing up to $2,560,000, 100% bonus depreciation, per-stop route costing, and seasonal cash flow budgeting.

mike

bookkeepingsmall-businessrevenue-recognition

July 20, 2026

Pottery Studio Bookkeeping: How to Cost Kiln Firings, Glaze, and Clay for True COGS

A ceramics studio's true cost per piece includes two kiln firings, labor, 12–15% clay shrinkage, and a 5–15% failure allowance — not just $1 of clay. Here's the six-line COGS breakdown, per-firing kiln allocation, and the deferred-revenue treatment for classes and memberships.

mike

bookkeepingsmall-businesscost-of-goods-sold

July 20, 2026

Renaissance Faire and Festival Operator Bookkeeping: Vendor Booth Fees, Weekend-Concentrated Revenue, and 1099 vs. W-2 Cast

How renaissance faire and festival operators should handle books when a year's revenue lands in eight weekends — booking vendor booth deposits as deferred revenue, forecasting twelve months of cash flow, classifying cast under the ABC test with the 2026 $2,000 1099-NEC threshold, and remitting event sales tax within compressed 10-30 day deadlines.

mike

bookkeepingseasonal-businesssmall-business

July 20, 2026

Sign Language Interpreter Agency Bookkeeping: Why a Two-Hour Minimum and a No-Show Fee Can Make or Break Your Margin

How interpreting agencies and freelance ASL interpreters should book VRI versus in-person revenue ($35–$100/hr versus $50–$145/hr with two-hour minimums), cancellation fees, deferred retainers, and 1099-vs-W-2 classification risk — plus revenue per bookable hour, the KPI that actually predicts margin.

mike

bookkeepingsmall-businessindependent-contractor

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