3 Tips to Keep Membership and Subscription Revenue On Track

Posted by Ann Eichel

Tue, Nov 22, 2016

Association AccountingAssociation 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.

To keep anniversary-based membership dues and subscription payments on track, make sure you have the following processes in place:
  1. Each week, review unpaid and partially paid memberships and subscriptions.
  2. Once a month, run an expiration report for memberships and subscriptions. Create and send renewal invoices based on this report.
  3. Every month, batch and recognize membership and subscription revenue.
These are just a few examples of processes associations can put into place to help maintain data integrity in their association management systems (AMS). Accurate data within an AMS means staff members can identify and take action on a trend or issue, instead of spending time double checking and manually fixing data. Proactively addressing these “blips” in the financial process, before they become problems, helps to keep association revenue streams flowing.

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.

         

   

Topics: accounting

Tip Sheet: Accounting Tips to Keep Association Revenue Flowing

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