Close & reporting
Revenue recognition (ASC 606 / IFRS 15)
Finbryn builds ASC 606 revenue recognition schedules for US businesses, separating contracts into performance obligations, allocating transaction price across them and scheduling revenue by month, so recurring, multi-year and bundled contracts are recognized when earned rather than when cash is collected.
Management report
Illustrative client · August 2026
USD
| Line | Aug | Jul | |
|---|---|---|---|
| Revenue | 142,380 | 131,904 | +10,476 |
| Cost of sales | (51,260) | (48,115) | (3,145) |
| Gross profit | 91,120 | 83,789 | +7,331 |
| Payroll | (46,300) | (45,900) | (400) |
| SoftwareNoted | (6,480) | (5,490) | (990) |
| Rent | (8,000) | (8,000) | 0 |
| Other operating | (9,215) | (9,870) | +655 |
| Net income | 21,125 | 14,529 | +6,596 |
Reviewer's note
Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.
Illustrative. An example of the document, not a client's figures.
The problem ASC 606 solves
A business that collects a year of subscription fees up front, or bills a bundled contract covering a product plus a year of service, cannot simply record all of that as revenue the day the invoice is paid. ASC 606 requires revenue to be recognized as each distinct part of the contract is actually delivered, following a five-step model: identify the contract, identify the separate performance obligations within it, determine the transaction price, allocate that price across the obligations, and recognize revenue as each obligation is satisfied.
What this looks like in practice
For a SaaS company, this usually means separating subscription revenue, recognized ratably over the service period, from a one-time implementation fee, which may be recognized differently depending on whether it represents a distinct performance obligation. For an agency, a retainer covering several deliverables over a quarter gets split across those deliverables rather than recognized as one lump payment. For a business selling a product with an attached service contract, the two get valued and recognized separately.
Building and maintaining the schedule
We review your contracts, identify the performance obligations in each, and build a monthly recognition schedule that ties recognized revenue back to deferred and unbilled revenue balances on the balance sheet. Judgment calls, such as whether an implementation fee is distinct from the ongoing service, get documented in a memo so the reasoning is available if a lender, investor or auditor asks about it later.
Where this connects to other work
The deferred and unbilled revenue balances that come out of this schedule are tracked in detail as part of deferred revenue management, and the schedule as a whole is a core input into US GAAP conversion for businesses moving off cash basis.
Questions
Frequently asked questions: Revenue recognition (ASC 606 / IFRS 15)
Do I need a formal ASC 606 schedule if my business only sells simple one-time products?
Probably not in the same depth. ASC 606 matters most when a contract spans a period of time, bundles multiple deliverables, or collects cash before the work is done.
How do you decide what counts as a separate performance obligation?
We look at whether the customer could benefit from each part of the contract on its own or together with resources readily available to them, which is the core test under the standard, and document the conclusion for each contract type.
Does this apply to usage-based or consumption pricing models?
Yes, though the recognition pattern follows usage rather than a straight-line schedule, and we build the schedule to match how the contract actually charges for consumption.
What does revenue recognition (ASC 606 / IFRS 15) actually include, month to month?
Revenue recognition (ASC 606 / IFRS 15) covers contracts reviewed and separated into distinct performance obligations, along with transaction price allocated across each obligation. The work runs inside QuickBooks Online, NetSuite, Sage Intacct, Google Sheets or Excel, the file stays under your own subscription, and a senior principal reviews the output before it reaches you each period.
What access do you need to start revenue recognition (ASC 606 / IFRS 15)?
View or edit access to QuickBooks Online, NetSuite, Sage Intacct, Google Sheets or Excel is enough to begin; nothing about your existing subscription or login changes on our side. Any additional access needed for a specific deliverable, such as a bank portal or receipt inbox, is agreed with you first, and the scope is set out in your engagement letter.
Does this apply outside of software subscriptions?
Yes. Any business with multi-year contracts, bundled products and services, or upfront fees tied to ongoing delivery needs a recognition schedule, not only SaaS companies.
What is the difference between deferred revenue and unbilled revenue?
Deferred revenue is cash collected before it is earned. Unbilled revenue is the reverse: work delivered before an invoice goes out.
How do we get started with revenue recognition (ASC 606 / IFRS 15)?
Getting started with revenue recognition (ASC 606 / IFRS 15) begins with a short review of your current records and software access. Once that is done we confirm scope and timing in writing, and ongoing work begins on the schedule agreed with you.
What if our records for revenue recognition (ASC 606 / IFRS 15) are not up to date?
If your records are behind, we scope a catch-up first so revenue recognition (ASC 606 / IFRS 15) starts from a clean, reconciled base. That catch-up is priced and timed separately from the ongoing engagement, so you always know what each part costs.
Related services
- Close & reportingDeferred revenueCash collected before it is earned tracked separately from revenue and released to the profit and loss on the schedule that matches when the work is actually delivered.
- Close & reportingUS GAAP conversionBooks moved from cash basis or another framework onto US GAAP accrual accounting, with every adjustment documented so a lender, investor or auditor can follow the trail.
Industries
- SaaSBookkeeping and reporting for subscription software businesses tracking recurring revenue, deferred revenue and burn.
- Startups and VC-backed companiesBookkeeping and reporting for early-stage, venture-backed companies watching burn, runway and investor reporting closely.
- Agencies and consultanciesBookkeeping for marketing agencies, design studios and consulting firms billing clients on retainers and project fees.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.