Separate signed contract value from billing, receivables, cash collection, revenue recognition, deferred revenue, and contribution cash, then see how commercial terms and service timing create different financial positions from the same contract.
About this interactive
This interactive separates contract signature from invoice timing, receivable creation, cash collection, revenue recognition, deferred revenue, and contribution cash. The revenue-recognition view is a simplified planning representation of an over-time recurring service and does not determine accounting treatment for a specific contract. It supports contract and cash-timing decisions within our FP&A for Startups practice.
Interactive view
The lines compare cumulative invoicing, cash collection, and revenue recognition. The shaded balance shows the simplified deferred-revenue position created when billing runs ahead of service.
What the interactive shows
STARTUP CONTRACT CASH & REVENUE TIMING BRIDGE — ILLUSTRATIVE RECORD City Shift Finance CURRENT INPUTS Annual contract value: $120,000 Contract term: 12 months Billing timing: Quarterly in advance Payment terms: 30 days Service start delay: 2 months Implementation cash cost: $12,000 Delivery cash cost: $2,600 / month Collection realization: 98% TIMING OUTPUTS First invoice: Month 1 First expected cash collection: Month 2 Revenue recognition begins: Month 3 Full recurring revenue recognized: Month 14 POSITION OUTPUTS Peak receivable: $31,800 Peak deferred-revenue proxy: $40,000 Expected cash collected: $117,600 Recurring revenue recognized: $120,000 Ending contribution cash: $74,400 FINDING Quarterly invoicing begins at signature, expected cash begins in month 2, and recurring-service revenue recognition begins in month 3. The timing difference creates a peak deferred-revenue proxy of $40,000 and a peak receivable of $31,800 even though the signed recurring value is unchanged. METHOD STATUS Planning representation only. Contract value is invoiced from signature according to the selected billing frequency. Expected cash collection is shifted by the entered payment-term lag and adjusted by collection realization. Recurring revenue is recognized evenly over the entered service term beginning after the service-start delay. Deferred revenue is presented as a simplified proxy equal to cumulative invoicing less cumulative recognized recurring revenue, floored at zero. Receivables equal cumulative invoicing less cumulative expected collections. Contribution cash equals expected collections less implementation and active-service delivery cash costs. Actual ASC 606 treatment depends on contract-specific facts.
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