Transition from cash-based sales to credit/accrual based sales

[Daniel-G]

Hi all,

I work for a scaling startup and we are currently transitioning our sales operations from cash-based revenue recongition to credit/accrual based.

What this essentially means - Revenue will no longer be recognized when marking a deal as paid, but one stage before after an order form has been signed and terms have been agreed with the client.

From a reporting stand-point, this makes things a bit difficult. Should both stages now be marked as Won? 

I was wondering whether anyone had any experience going through something similar, and how they dealt with it?

Thanks!

[MandyDROS · Accepted solution]

Hello Daniel! 

For starters, when it comes to forecasting, you would want to update this pre-payment stage as a Closed Won stage so that your forecasting adjusts to the accrual model.  

From a reporting standpoint, will the "paid" stage matter in Hubpsot and does it impact any other automations or functions?  

Your custom reports can be set up to include specific pipelines and stages so you can build your reports for your new accrual recognition.  

Let me know if this helps! 

[MiaSrebrnjak]

Hi @Daniel-G,

Thank you for reaching out to the Community!

I wanted to tag in a couple of subject matter experts to see if they have any input on this matter:

hi @HubDoPete, @ABurgess, @jfreeman, @AdamLPW do you have any suggestions for @Daniel-G?

Thank you!

Mia, Community Team