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When you receive the annual payment upfront, it becomes deferred revenue, and each month you would amortize the portion that is earned during that month
What does that mean exactly
But should I put it into something that can me making interrest while I use it to pay salaries, expenses, etc
Amortize means you would recognize income each month - so if you had $500,000 in January for your entire year of revenue, you would debit cash for $500,000 and credit deferred revenue for $500,000
then at the end of January you would debit deferred revenue for $41,667 and credit revenue for $41,667
You can put it somewhere earning interest, but right now the rates aren't that great
You can use the funds for whatever you like, but keep in mind that you would have to give refunds where allowed and where requested
There has got to be something I can do with it other then just throw it into an account
Well, your investment options are money market accounts earning interest, real estate, and the stock market - I would not recommend the last two for operating funds
so you cant recommend anything to do with it to make money on it in the mean time
any decent money market funds you can recommend?
And can you have a business money market account?
Right now, none are getting very high interest
yeah but any interest is better than none
Yes, you can have a business money market - it's essentially the same thing as a business savings
Yes, but you're talking less than 1%
wow thats it
What about something that can pay me mothly
Yes, right now. Until the quantitative easing ends and the fed lifts the interest rate, banks aren't paying out on their savings and money market accounts
or do I just pay myself
You just pay yourself
what if you are not good with money
should you leave that part to someone else?
like a service
If you're not good with money, I would hire an accountant in your local area
they can manage the money?
to at least direct you with what to do given your goals, etc
Yes, if you agree to it
You could also get a banker to assist you, but I prefer accountants because they are licensed
so an account or CPA? Anyone better then the other?
CPA would be better, because they have a lot to lose if they mismanage your funds
ok thanks for the advice
private or chain CPA?
Like H&R Block or something
I would go to a local firm
The last local firm I went to closed
Not a chain
a year later I had to go to someone else
Look for someone that has been around a while.
Okay thanks so much
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