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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso -- Unearned Revenue
Description: Unearned Revenue Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. SaaS businesses charge a subscription fee for the product on a monthly or annual basis. For those charging on an annual basis, the revenue generated at the beginning of the contract is considered unearned revenue. Unearned revenue is revenue received before the service actually occurs. The unearned revenue is not an asset, but rather a liability until it is earned. It must be reported in the balance sheet as a liability. As the revenue is earned, you must m...