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.
To keep anniversary-based membership dues and subscription payments on track, make sure you have the following processes in place:
- Each week, review unpaid and partially paid memberships and subscriptions.
- Once a month, run an expiration report for memberships and subscriptions. Create and send renewal invoices based on this report.
- Every month, batch and recognize membership and subscription revenue.
For more recommendations that will help your association keep multiple revenue streams on track, download our tip sheet “4 Accounting Tips to Keep Association Revenue Flowing.”
About Ann Eichel
Ann is a CPA with 20+ years of association management and IT experience. She is currently a senior project manager for Protech Associates, Inc., where she enjoys helping associations successfully implement new AMS software.