Year-End Deferral Problems? Binary Stream Solves Them!

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Year-End Deferral Solution

Are you faced with a slew of deferrals to clean up at year-end? Are you managing your deferrals to ensure maximum taxable benefits? Smart deferral of income and chargeable gains that allow you to defer taxes to the following year?  You may find the thought of year-end deferrals enough to turn your stomach. However, managing deferrals efficiently and managing them to achieve maximum business advantages can be easy and virtually stress-free. Really! Binary Stream offers a year-end deferral solution.

Deferrals and Deferral Adjustments
Deferral entries are like postponed transactions; the money part has already happened. However, the income statement impact was put off until later. Adjustments are required to transform these entries from the balance sheet to the income statement. Prepaid expenses become current expenses and unearned revenues turn into current revenues.

Deferred Revenue Adjustment
With deferred revenue, your company gains the positive cash flow from a customer’s advance payment, without the need to record taxable revenue at the same time. Adjustments are necessary when you begin earning that money. At this time, you are required to shift all or part of your liability account to your revenue account.

Deferral of Income
Here’s where you can maximize your cash-in-hand by managing your deferrals smarter. Any payments your company can receive during the first week of January as opposed to December can cut your tax bill. Every penny deferred until January will not owe taxes until April the following year. Managing the instances you can implement deferral of income is extremely easy, doesn’t involve spreadsheets and leaves no room for error when you use a solution such as Binary Stream’s Advanced Revenue and Expense Deferrals (ARED).

Efficient Deferral Management

Efficient deferral management made easy with Advanced Revenue and Expense Deferrals. Here’s how:

  • Define deferral  “profiles” by item or by distribution type
  • Choose not to auto-post to future periods
  • Choose not to post to closed periods
  • User-controlled  reversed deferral journal entries (we do not reverse all postings at once)
  • Out of the box inquiries to view deferred revenue by customer, item, etc.
  • Place deferral schedules on hold
  • Apply credit memos to deferral schedules
  • Various methods for cancelling schedules
  • Import schedules
  • Integrate to Recurring Billing Manager for recurring SOP invoicing
  • Integrated VSOE calculations
  • Prorate first and last period
  • Manage different deferrals within the same invoice with extreme ease

Interested in learning more? Contact [email protected]



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