Sign in
An image of the Stripe logo
Create account
Sign in
Home
Payments
Business operations
Financial services
Developer tools
No-code
All products
Home
Payments
Business operations
Home
Payments
Business operations
Financial services
Developer tools
Overview
Fraud detection
Stripe data
Financial reports
Payment authentication reports
Revenue recognition
    Overview
    Get started
    Recognize revenue with Stripe
    How revenue recognition works
    Methodology
    Subscriptions and Invoicing
    One-time payments
    Refunds and disputes
    Multi-currency
    Connect platforms
    Frequently asked questions
    Reports and features
    Revenue recognition reports
    Monthly summary
    Revenue waterfall
    Overrides
    Audit your numbers
    Examples
    Configure reports
    Revenue recognition rules
    Accounting period control
    Revenue controls
    Map to your chart of accounts
    Data import and export
    Import data to Stripe
    Export data from Stripe
Startup incorporation
Climate
Identity
Tax
Financial Connections
Account
Dashboard
HomeBusiness operations

Revenue Recognition overview

Automate your accrual accounting process with Stripe Revenue Recognition.

Get started

You can sign up for a 30-day trial of Revenue Recognition or sign up for the Billing Scale plan. We base fees on Stripe Billing pricing.

Revenue recognition is a fundamental component of accrual accounting. Generally accepted accounting principles (GAAP) state that you should recognize revenue when you realize and earn it, which may be earlier or later than when you actually receive cash. Correctly recognizing and deferring revenue enables you to have the most accurate insights into your business profitability and financial health.

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 may need to follow accrual accounting to raise money from investors or get a loan from a bank.
  • Subscription and service-based business and businesses that sell digital or physical goods where customers pay upfront before receiving the good or service.

Revenue recognition can provide these businesses with a clear picture of their performance.

Revenue recognition gets complicated quickly as businesses scale, and payments volumes and product lines increase. For subscription businesses that need to manage changes, refunds, disputes, and prorations, revenue recognition can be especially complex because 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.

Stripe Revenue Recognition

Stripe Revenue Recognition helps you simplify the process of recognizing revenue for your accounting process without the need for engineering involvement or lengthy configurations.

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

Read more about Stripe’s revenue recognition methodology.

Was this page helpful?
Need help? Contact Support.
Watch our developer tutorials.
Check out our product changelog.
Questions? Contact Sales.
Powered by Markdoc
You can unsubscribe at any time. Read our privacy policy.
On this page
Who needs revenue recognition
Stripe Revenue Recognition
Stripe Shell
Test mode
Welcome to the Stripe Shell! Stripe Shell is a browser-based shell with the Stripe CLI pre-installed. Login to your Stripe account and press Control + Backtick on your keyboard to start managing your Stripe resources in test mode. - View supported Stripe commands: - Find webhook events: - Listen for webhook events: - Call Stripe APIs: stripe [api resource] [operation] (e.g. )
The Stripe Shell is best experienced on desktop.
$