Does Kintsugi AI handle transactions that have unrecognized revenue?
Answer:
Revenue recognition is crucial for accurate financial reporting. It ensures that financial statements accurately reflect your company’s actual economic performance within a specific period of time. Failure to recognize revenue properly can result in misleading financial information and potential legal issues.
At Kintsugi AI, we use a straightforward approach to determine which transactions should be included in filings. To be considered for inclusion, a transaction must have one of the following statuses:
Committed
Partially Refunded
Fully Refunded
The inclusion of a transaction in a filing period depends on both the date and the status of the transaction. If the transaction falls under any of the statuses mentioned above, it must be included in the month’s filing, regardless of the customer’s internal revenue recognition practices.
Our system automatically syncs invoices that lack revenue journal entries. Additionally, it’s important to note that tax is typically owed on the full invoice amount, regardless of how the revenue is recognized.