ASC 606 and GAAP
Could that be any more incoherent? At Calqulate, we don't think so. Which is why we're here to help.
ASC 606 is the revenue recognition standard that affects all US companies which use a SaaS business model.
It unifies the USA's standards with Generally Accepted Accounting Principles throughout the world.
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An easy concept thats tough to implement
Splitting revenue by the total number of months of the subscription is simple maths. If I get a $1200 annual subscription, I recognise $100 dollars a month.
If only the real world was so cut and dry.
What happens when you have non recurring products?
Or Concurrent invoices in the same subscription?
