Revenue recognition

What is Revenue recognition ?

Revenue recognition is the accounting process of recognizing and reporting revenue in a company's financial statements. It refers to the methods and principles used to determine when and how revenue is recognized, or recorded, in a company's financial statements. Revenue is recognized when it is earned, and the amount can be reasonably estimated.

Why Is Revenue Recognition Important for Investors?

Revenue recognition is important for investors, as it provides an indication of a company's financial health and performance. Different industries may have specific revenue recognition rules that need to be followed.

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