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What is the revenue recognition principle?

As part of my business series on the blog, here is an info-graphic covering revenue recognition. As some of you know, revenue recognition has a special place in my heart as I audited revenue for a software company in the bay area.  I had to know these principles like that back of my hand. If you are hoping to run a business with investors, you may want to know some of this too. Without further adieu, the info graphic and intro by Ghergich & Co.

When it comes to plotting out your next steps as a business, there are a lot of factors that come into play. Of course, you need to understand expenses and employees and demand and customers, but you also need to figure out what to do about revenue — and by that I mean, what do you do about recognizing revenue.

There are a number of different established accounting principles that are acceptable and that can guide you in figuring out what’s best for your business. For example, you can recognize the revenue after you have completed the obligat…

5 Benefits of a Frugal Lifestyle

Frugality may not seem to be the right path for everyone. It takes preparation, self-discipline and careful budgeting. While this may seem like more work than it’s worth, the benefits of living a frugal lifestyle far outweigh any drawbacks.
The most commonly cited reasons for living frugally include the ability to retire before the age of 65, and better peace of mind. Here are a few more.
  1. Improved health. Living within your means and avoiding debt can significantly reduce stress and anxiety, resulting in better quality sleep. In addition, now that you’re watching your spending more closely, you are probably not wasting money on fast food – a convenience that can easily lead to an unhealthy diet. Someone who is trying to save money on gas may take up biking – another added health bonus.
  2. Increased creativity. A frugal person is forced to be resourceful. Rather than relying on a repairman when something breaks down, could you learn the skills and do it yourself? Many thrifty spenders join forces with groups in their community and barter services instead of cash. These out-of-the box problem solvers enjoy a unique ingenuity that can’t be bought.
  3. Sense of satisfaction. Being prudent means getting more for less by negotiating better deals. This sense of accomplishment can be very rewarding. A clever penny-wise often enjoys contentment by living simply and avoids the “keeping up with the Joneses” mentality.
  4. Environmentally supportive. Those who are economical throw very little away and therefore do not contribute to the waste that piles up in landfills. When you adopt a frugal lifestyle, you can be happy knowing you are doing your part to sustain the planet.
  5. Set a good example. Parents that are budget conscious tend to raise children who appreciate the value of a dollar. Frugal families work towards a common goal together, avoiding conflict and arguments about money that plague so many others.
If you’ve been thinking about making some changes in how you save and spend your hard-earned money, consider the pros and cons. You will likely decide that a frugal lifestyle is worth a try.

Comments

  1. Frugal lifestyle is great! However, it can easily result in the anxiety. I strongly believe that it is possible to take steps to regain control and reduce the anxiety you feel regarding money. One of the most important steps is mastering the art of relaxation.

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