Campfire handles deferred revenue by creating and maintaining recognition schedules whenever payments are received before services are delivered. Amounts billed in advance are recorded on the balance sheet and released to revenue as obligations are met. The system keeps schedules updated in real time as contracts change, so balances always reflect current commitments. This removes the need for manual tracking and helps ensure revenue is recognised in the correct period.
Campfire builds deferred revenue schedules automatically when invoices are raised ahead of delivery. Each schedule provides a clear waterfall view, showing opening balances, new deferrals, revenue recognised, and closing balances for each period. Both straight-line and performance-based methods are supported, depending on how obligations are fulfilled. When contract terms are updated, schedules are recalculated to maintain accuracy. This gives finance teams a clear and consistent view of how deferred revenue moves over time.
Campfire maintains a reconciled view of deferred revenue that aligns directly with the general ledger, helping streamline the close process. It produces roll-forward schedules and remaining performance obligation disclosures required under ASC 606 and IFRS 15. Balances can be analysed by contract, customer, product, or entity, providing clear supporting detail for reporting and audit. This reduces manual reconciliation work and gives auditors confidence in reported figures.
Why Campfire Stands Out
