News letter publishing business

"Richard Shapiro" wrote

A liability account called "subscription liability" to book the subscription fees received. Then dump the appropriate amount to "Subscription Revenues" as they are earned. To make life easier, keep that revenue separate from other retail sales (newsracks, etc.)

It may be possible to set up the subscribers account (AR basically) where it points to that liability account. Post the payment to their account and "bill" the account on a monthly basis to record the revenues and reduce the customer account.

Perhaps a better name for the "subscription liability" account is a current liability called "prepaid subscriptions"....

Steph

"S.M.Serba" wrote

Whatever works, as long as it is separate and distinct enough from any "prepaid subscriptions" account that gets set up (if the business books their multi-period subscriptions to an asset account instead of expensing them).