HumanBookkeeping.com™ can help. We are expert bookkeepers that can help your small business with its bookkeeping needs. Here’s a short explanation of what Unearned Revenue/Income
means. If we can be of more help explaining what Unearned Revenue/Income
is or if we can help you with any of your small business bookkeeping needs, give us a call at 888-552-6657(888-55Books).HumanBookkeeping.com™ provides a way for small businesses to have outsourced bookkeeping at a significant savings. We provide our clients with pre-printed envelopes. You stuff the envelopes and our expert team does the rest with detailed reports and timely compliance support. Not to mention, you now have a team of experts at your disposal should you have questions or last-minute needs. Let’s start with answering what Unearned Revenue/Income means:
When customers pay in advance, a bookkeeper does not record the lump sum payment as revenue. Rather, the amount is recorded as a liability known as Unearned Revenue, or Unearned Income.
Many find it odd that unearned income would be classified as a liability. It is defined as a liability since the company has taken payment and accepted an obligation to perform a future service or provide a product in the future.
Need more information or help? Don’t hesitate to give us a call right now at 888-55Books.