Association accounting departments have to manage many revenue streams, from memberships and event registrations to product sales and subscriptions. With different departments handling different revenue generating activities, it is important to develop solid business processes that will keep each revenue stream’s reconciliation procedure on track and organized.
Membership and subscription revenue streams are typically set up on a cash basis where revenue is not recognized until the dues are fully paid. Therefore, associations need to keep track of membership expiration dates, invoicing cycles and revenue recognition so the accounting department can close each month smoothly. Monitoring unpaid invoices also promotes a stable membership retention rate.