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Why Subscription-Based Models Need Specialized Accounting

jess
Published 07/07/2025 - 6 days ago
Category
Business
Description

Unlike traditional sales, subscription models involve:

  • Recurring billing cycles (monthly, quarterly, annually)
  • Deferred revenue recognition
  • Customer churn and lifetime value tracking
  • Tiered pricing and usage-based billing
  • Free trials and promotional discounts

These elements make revenue forecasting and compliance more intricate than in other industries.

 
 

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