Bookkeeping

These companies simply recognize the revenue in full when they receive a Bookstime payment. They have to pay income tax on the payments they receive, even if the goods or services haven’t been provided yet. Over time, the liability gradually gets converted into income (earned revenue) as the product or service gets delivered. Two Types […]

While it might sound like an upfront payment, its treatment is different from the unearned retainer. This is because the professional or firm has, in essence, already provided value, often in the form of availability or blockage of a time slot, upon the payment of this fee. This fee is deposited into a trust or