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Adam Hunt
Adam Hunt, Accountant
Category: Tax
Satisfied Customers: 244
Experience:  FCCA, FFA, FFTA
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I need some help with putting together deferred revenue and

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Hi there, i need some help with putting together deferred revenue and debtors for a SaaS company. I have a spreadsheet that i need to fill out, is this something you can do?
JA: Have you talked to a tax professional about this?
Customer: no, its an accounting treatment
JA: Anything else you want the Accountant to know before I connect you?
Customer: no

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

The problem her is will the deferred revenue arrive and, in the longer term, will the debtors pay up? It would be traditional to include a provision for bad or doubtful debts in the company's accounts to allow for this contingency. It brings back memories of my old examinations where such provisions were always included in final accounts.

Customer: replied 2 months ago.
Thanks for the advice here. I have attached an excel doc to the question, the issue i am having is calculating the monthly deferred revenue.

To date there is no attached document, sorry!

Customer: replied 2 months ago.
Sorry its attached now

Have you no background information regarding debtor payment possibilities?

Customer: replied 2 months ago.
Unfortunately not, this was all the info i was given. It's more scenario testing i believe, if you could help me with the deferred revenue across the year and let me know the method you would use here i can decipher the others

Here is some advice from Accounting Tools:

'A business typically estimates the amount of bad debt based on historical experience, and charges this amount to expense with a debit to the bad debt expense account (which appears in the income statement) and a credit to the provision for doubtful debts account (which appears in the balance sheet). The organization should make this entry in the same period when it bills a customer, so that revenues are matched with all applicable expenses (as per the matching principle).'

Unfortunately that throws the onus on you and to date you have no indication of hew responsive your debtors accounts will be. Perhaps 10% might be appropriate.

Customer: replied 2 months ago.
i would just like help with the deferred revenue across the year

Well I have given you an inkling. Do you have contact with others in this business?

Hi, I am one of the Experts. Let me work out on your excel sheet and then i attach it for you to take a look. Please give me few minutes to do so now.

Please take a look on to the attached file. Hope you are happy now?

Adam Hunt, Accountant
Category: Tax
Satisfied Customers: 244
Experience: FCCA, FFA, FFTA
Adam Hunt and other Tax Specialists are ready to help you
Customer: replied 2 months ago.
This is great thanks a lot

Thank you so much.