Lead-to-cash/Stage 7 of 7

Revenue

Revenue recognition, deferred revenue, and reporting.

What happens at this stage

The revenue stage turns billed and collected amounts into reported revenue. Under ASC 606 and IFRS 15, revenue is recognized as the work is delivered, not when the invoice is sent or paid, so subscriptions, milestones, and usage each follow their own schedule.

This is where the whole cycle is measured: deferred revenue, recognized revenue, and the reports leadership uses to judge growth. Gaps anywhere upstream show up here as manual adjustments at close.

Where it usually breaks

  • Revenue schedules are rebuilt in spreadsheets every month.
  • Usage-based and token pricing do not map cleanly to performance obligations.
  • Contract changes are billed correctly but never reflected in the revenue schedule.

Metrics to watch

  • Deferred revenue balance
  • Days to close the month
  • Manual revenue adjustments per close