Post by Cody Leach, CPA 🟡

It’s been interesting to see just how consistent revenue recognition issues are for high-volume companies using Stripe and the App Stores (Apple, Google Play). It might feel specific to each org, but it's not. And it's not for lack of trying - the standard reporting for these systems DO NOT facilitate doing ASC 606 accounting. Nor the other ASC no one tends to talk about like ASC 340, ASC 830, ASC 326, etc. Everyone has the same canned reports manipulated in the same giant excel files. It's wild. Outside the normal potential errors and summary entries everyone is forced into posting - the major non-GAAP faux pas are: ❌ Recording revenue on cash payments ❌ Ignoring bad debt ❌ Outright under recording liabilities/expenses This works if you are private, backed by trusting investors with deep pockets. But if you're like the rest of us plebs and have any sort of aspiration for fundraising, exiting, or going public - the reporting is going to sink it. That's why companies needing to be compliant on these systems at scale partner with HubiFi - like Cursor, Strava, eero, etc.