A/E INDUSTRY BEST PRACTICES WEBINAR SERIES
Topic: A/E Firms Discuss Their Experience With Axium Ajera
Speaker: Herb Cannon, President, AEC Management Solutions
The revenue recognition principle is a cornerstone of accrual accounting together with matching principle. They both determine the accounting period, in which revenues and expenses are recognized. According to the principle, revenues are recognized when they are realized or realizable, and are earned (usually when goods are transferred or services rendered), no matter when cash is received. In cash accounting – in contrast – revenues are recognized when cash is received no matter when goods or services are sold.
This session will review the pros and cons of various revenue recognition methods and offer advice on when each method is most appropriate.
- The theory behind revenue recognition principles
- The pitfalls of using Work in Progress for recording revenue
- The Estimate to Complete method that CPA’s love
- The practical advantages and problems with each method
President, AEC Management Solutions
Herb is one of the nation’s leading experts in the management of AE firms. He has held top management positions in a number of high profile firms and has been a featured speaker for the American Institute of Architects, SMPS, National Society of Professional Engineers, and ACEC.
Axium Industry Webinars
Axium industry webinars are designed to help A/E professionals stay current on trends and best practices. Each webinar features an industry expert and a topic relevant to growing A/E firms.
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