When your new client made a business agreement with your company and paid an advance settlement for the products or services that are yet to be rendered or delivered, how would you account for the payment made? In almost all cases, every business recognizes it as the company’s deferred revenue and records it as a liability on their balance sheets. In this article, we present a list of balance sheet templates to which you can accurately input the amount earned from this type of business transaction.
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10+ Deferred Revenue Templates in Google Docs | Word | Excel | Pages | Google Sheets | Numbers | PDF
Save yourself from too much hassle and stress of manually drafting a balance sheet from scratch with the help of these templates.
1. Balance Sheet Template
Balance sheets help you record and monitor your business’s revenues and expenses quarterly, monthly example, or yearly. With that said, we’ve made this Balance Sheet Template available in almost file formats for a smooth editing process. Need a copy of this template today? Download it immediately!
2. Accounting Balance Sheet Template
If you need a balance sheet template to account for your deferred revenue, then this Accounting Balance Sheet Template is what you need to download. See what benefits you can get in securing a copy of this template today. Utilize and edit it in Google Docs, Google Sheets, MS Excel, MS Word, Numbers, Pages, and Editable PDF. Don’t waste a chance to download this template anytime today!
3. Payment Balance Sheet Template
When you want to make an advance payment for a service or a product, let this Payment Balance Sheet Template help you in the process. It makes use of the content and a layout that you keep as-is or modify. The template is readily available in A4 and US print sizes, perfect for commercial as well as personal printing. What are you still waiting for? Download it now!
5 Steps to Account for Deferred Revenue
Step 1: Determine the Transactions
When your business company receives an advance payment for specific products or services that are yet to be delivered or performed, you are making a deferred revenue. On your financial statement, the deferred revenue is recorded as the company’s liability. The company owes either the services or the goods that the requesting company has paid for already. For this reason, every deferred revenue should be recognized as a liability. Hence, the first step requires you to determine all the business transactions that involve the deferred revenue. Identify and list these types of operations in a detailed manner.
Step 2: Distinguish Received from Earned
Initially, the company’s deferred revenue is recognized as an earned income or the company’s revenue in a given time; however, you need to understand that the received revenue leaves out no obligations. It means that the payment has been made, and the products or services were already delivered or rendered. Make sure you will be able to differentiate the received from the earned to avoid confusion and to attain accurate financial accounting on your deferred revenue.
Step 3: Learn the Accrual Basis of Accounting
Under the accrual basis of accounting, your deferred revenue is recorded in your income statement as earned rather than received. To further understand why learning an accrual basis of accounting is of vital importance in this process, we need to define and differentiate the accrual method from the cash method. According to Investopedia, the only difference between the accrual method and the cash basis is when the revenues are recognized. While the cash method records revenues at the time when the cash is received or paid out, the accrual method accounts for revenues when the company delivers a product or performs a service even if the payment is yet to be paid. Therefore, you need to understand the accrual basis of accounting for you to record the deferred revenue accurately and efficiently.
Step 4: Calculate
For some businesses, deferred revenues are easy to calculate. It refers merely to the sum of all the deposits and the advance payments made by your customers. When you have identified every business transaction involving deferred revenues, you only have to add all up to get the total deferred revenue amount.
Step 5: Record
When you record the deferred revenue of your business on a monthly, quarterly, or yearly basis, you need to prepare and register it in a balance sheet. With this, we have provided a wide array of editable sheet templates above that you can utilize to your advantage. Each model comes with the preformatted content already and a well-established layout. You only have to modify and make a few changes whenever it deems necessary.
4. Restaurant Balance Sheet Template
Get to account for all the expenses sample and the revenues of your restaurant business with the help of your print-ready and ready-made Restaurant Balance Sheet Template. This template can also be a useful tool in determining your business’s earned and received revenue, and therefore accounts for an accurate deferred revenue. So, don’t just let it slip through your hands. Download it now!
5. Investment Property Balance Sheet Template
Are you currently looking for a balance sheet template to draft your investment property expenses? Why not try our Investment Property Balance Sheet Template? The template is made ready and available in Google Docs, Google Sheets, MS Excel, MS Word, Numbers, Apple Pages, and Editable PDF. So, there’s no issue whether you want to edit it on your personal computer or any macOS device. Download it now to start the editing activity!
6. Balance Sheet Sample Template
This Balance Sheet Sample Template is readily available in Numbers, MS Excel, MS Word, and Pages file formats to help you edit it with ease. By using this template, it would be easy for you to draft a detailed financial document, such as an income statement. So, don’t miss out on this opportunity! Download it right away!
7. Sales Projections Template
Make your sales projections more accurate with the aid of this Sales Projections Template. In a year or two, you’ll be able to meet your projected annual outcome, including the revenues and the expenses. Get this template right away!
8. Monthly Balance Sheet Template
All short term revenues and expenses should be recorded weekly sample or monthly. Businesses can use this Monthly Balance Sheet Template to help them draft a financial statement they need to monitor the company’s financial health and progress. And if you also want to do the same, you can fully get this template right now. Just click the download button.
9. Free Balance Sheet Template
On the hunt for a free balance sheet template to utilize today? Great! We have prepared this Free Balance Sheet Template in MS Excel and MS Word file formats. All you have to do is modify the original content. It can save more time and a lot of money since you can download it for free. Grab a copy of this template now!
10. Balance Sheet Sample Form
Make use of this Balance Sheet Sample Form to help you draft a well-layout balance sheet. In Microsoft Excel, this sample template is easily editable and fully customizable anytime and anywhere. So you can organize data in this template the way you want it. Secure a copy today to start!
11. Balance Sheet Format
Learn a thing or two from this Balance Sheet Format that you easily download in a Portable Document Format (PDF) today. With this example as your guide, you’ll be able to identify where to put what. Download it now!