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A comment on Ask HN: When bootstrapping a startup, what are some ways to keep the lights on?. Parent comment

Re:Ask HN: When bootstrapping a startup, what are some ways ... by hawkice on Friday April 21, 2017 @11:51PM (#14171035)
I'm not aware of any good reasons, but I think GAAP standards say you can't recognize the revenue until the returns period ends? I think standard wisdom is to not have an official policy so as to keep the books simple (and maybe to avoid the downside I can't think of for returns periods) but use refunds pretty aggressively in support?
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Re:Ask HN: When bootstrapping a startup, what are some ways ... by GoldenMonkey on Sunday April 23, 2017 @02:50PM (#14179713)
Your company should be on cash-basis accounting. Unless you have a need for accrual based. When you file corporate taxes, you list the method of accounting you are using.

Cash basis:

Cash in hand, recognized. Cash out, recognized.

Keeps it simple :)

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