Keep service periods and payments linked
Annual subscriptions, implementation fees, credits and cancellations need identifiable records. The contract and accounting policy determine recognition; a large advance should not automatically appear as revenue for the month it reaches the bank.
Payment-platform activity is reconciled to the customer ledger, including fees, refunds and outstanding settlements. A successful bank match does not prove the underlying revenue and tax split is correct.
Give spending a useful classification
Contractors, software, equipment and development activity may need different accounting review. We preserve the business purpose and project evidence. Incentive eligibility and capitalization are not assumed merely because a purchase relates to technology.
Illustrative example: annual subscriptions fund future service
A Burnaby software business receives $48,000 for annual plans that begin together. The service-period schedule supports the accountant’s recognition approach, while the cash forecast tracks payroll and hosting commitments. The bank balance and the monthly revenue figure answer different questions.
Questions about this work
Can you calculate runway?
We can prepare an agreed cash view using supported balances and management assumptions. It should identify committed spending and the limits of the forecast.
Do you claim development incentives?
Tax-credit and incentive work is separate and requires the relevant specialist scope, records and eligibility assessment.
Put this into practice
Sources and current guidance
A practical next step
Bring the records you have.
We can identify missing information, agree on the scope and organize the next bookkeeping step.
Request a bookkeeping review