Reviso UK

  From an economic or accounting point of view, when we refer to fixed assets we speak of those elements of the company’s assets that intervene in the productive cycle, but do not disappear with it, in contrast to the elements that are called circulating, which disappear with the manufacturing and sales cycle of our product (or our service). In short, they are elements whose usefulness usually extends for more than a year. They are both conceptually and accountably part of the company’s assets. We distinguish between tangible fixed assets (machinery, furniture, computer equipment), intangible (patents, transfer rights, intellectual property, administrative concessions …) and real estate. The particularity of its behaviour at the level of income and expenses is that we do not discount the purchase price at the time of acquisition, but each year we depreciate or amortise a percentage of it, which will depend on the type of asset that is. Depreciation is the accounting refle...

Deferred revenue or Income  which is sometimes also referred to as unearned income relates to payments received from a customer in advance for services or goods which they have yet to receive or be delivered. What is Deferred Income Keeping track of deposits paid by customers and knowing when these should hit your accounts can be a tricky business. Large corporations down to  SME’s and freelancers  will experience this issue and any business that deals in payments in advance or on account would normally be expected to know exactly how much has been received as deferred revenue so, let’s explain this is in a bit more detail and see how it should be handled within your accounting system. Prepayments/Accruals Any customer that pays in advance, creating a  prepayment , on account or stage payments should be treated as a liability within your balance sheet until the work has been completed or the stage that you’ve charged them for has been completed as prior to this,...