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Revenue recognition
    Overview
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    How Revenue Recognition works
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    Revenue Recognition for Usage-Based Billing
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HomeRevenueRevenue recognition

Revenue Recognition

Automate your accrual accounting process with Stripe Revenue Recognition.

Get started

You can sign up for a 30-day trial of Stripe Revenue Recognition.

Revenue recognition is a fundamental part of accrual accounting. Generally accepted accounting principles (GAAP) state that you recognize revenue when you realize and earn it, which might be earlier or later than when you actually receive payments. You must correctly recognize and defer revenue to have the most accurate insights into your business profitability and financial health.

Stripe Revenue Recognition helps you simplify the process of recognizing revenue. This feature includes:

  • Recognized and deferred revenue summaries
  • Downloadable accounting reports and waterfall charts
  • Interactive revenue numbers for full audit transparency
  • Configurable accounting period controls and revenue recognition rules

Learn more about the Stripe Revenue Recognition methodology.

Who needs revenue recognition

Revenue recognition is critical for many types of businesses, especially:

  • Public companies or large businesses with over 25 million USD in annual revenue because they’re legally required to comply with ASC 606 and GAAP and IFRS accounting standards.
  • Startups that need to follow accrual accounting to raise money from investors or get a loan from a financial institution.
  • Subscription and service-based businesses.
  • Businesses where customers pay up front before receiving a good or service.

As businesses grow, revenue recognition becomes more complex due to larger product lines and increased payment volumes. Revenue recognition can be especially complex for subscription businesses that need to manage subscription changes, handle refunds and disputes, and manage prorations. These subscription updates can complicate the process of recognizing and deferring revenue accurately and compliantly.

New accounting standards

On May 28, 2014, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) jointly issued Accounting Standards Codification (ASC) 606, a new framework for businesses to recognize revenue from contracts with customers.

Get started

Set up Revenue Recognition

Learn how to use Stripe for your revenue recognition.

How Revenue recognition works

Learn how revenue recognition works within Stripe.

Examples

See example use cases where revenue recongition helps automate your business.

Pricing tiers

Learn about fees and pricing tiers for Stripe Revenue Recognition.

Revenue Recognition for multiple currencies

Understand the roles of presentment and settlement currencies in Stripe Revenue Recognition.

Customization

Customize rules

Customize rules to handle revenue treatments to your business.

Customize settings

Learn how to adjust the behavior of Stripe Revenue Recognition with settings.

Connect platforms and marketplaces

Revenue Recognition for platforms

Learn how revenue recognition works with Connect platforms.

Destination charges

Learn how revenue recognition works with destination charges.

Direct charges

Learn how revenue recognition works with direct charges.

Separate charges and transfers

Learn how revenue recognition works with separate charges and transfers.

Additional features

Usage-based billing

Learn how revenue recognition works with usage-based billing.

Contracts

Learn how to configure revenue contracts and model enterprise B2B sales contracts in Stripe Revenue Recognition.

Reports

Generate and export revenue reports using Stripe Revenue Recognition.

Transaction overrides

Learn how to make manual corrections to your revenue recognition reports.

Auditing

Use the Stripe Dashboard to examine the details of your revenue numbers.

Data management

Revenue Recognition data freshness

Understand when data becomes available to Stripe Revenue Recognition for different use cases.

Customize reports to use data from your General Ledger

Map transactions from the Stripe default accounts to the chart of accounts in your General Ledger.

Import data to Stripe

Import data from other sources to manage all of your revenue recognition in Stripe.

Export data from Stripe

Export CSV reports and summaries.

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