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Revenue recognition is a generally accepted accounting principle (GAAP) that identifies the specific conditions in which revenue is recognized and determines how to account for it. The revenue recognition principle, a feature of accrual accounting, requires that revenues are recognized on the income statement in the period when realized and earned—not necessarily when cash is received. Having a standard revenue recognition guideline helps to ensure that an apples-to-apples comparison can be made between companies when reviewing line items on the income statement. Revenue recognition principles within a company should remain constant over time as well, so historical financials can be analyzed and reviewed for seasonal trends or inconsistencies.

Software with Revenue Recognition

PRODUCT NAME SW SCORE(OUT OF 100) AGGREGATED RATINGS (OUT OF 5)
Quickbooks 98 4.2
Wave 96 4.1
Freshbooks 95 4.3
Zoho Books 94 4.3
Sage Accounting (Sage One) 94 4.7
MYOB 93 3.9
Accounting Seed 91 4.3
Pilot 91 4.8
Kashflow 91 2.6
AlignBooks 91 4.7

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