What types of reports would you expect are involved in tracking these income streams? When and how would you use them?
Revenue Stream are defined as "cash a company earns from its customers ." In an overall view of revenue streams, there are really two revenue streams and they are one-time and recurring revenues. (Expert Program Management, 2012)
- One-time revenue is considered a transactional revenue meaning the person simply pays once for the value of the sale. An example of this would be purchasing a product like a freezer or refrigerator or even food. Purchasing a car would be two-fold. The customer purchases the car as a one-time revenue to the car dealer, but maintenance to the car would be recurring revenue for the car dealer.
- Recurring revenue is when the person keeps paying to continually receive the value or support. Examples of this would be a support contract a company has for support of their computer equipment. A maintenance, service contract, usage fees, subscription fees, advertising fees and licensing to be precise.
For these types of revenue, companies utilize the following types of reports:
1) Budget reports
These are used by accountants and company managers to keep the costs in check. Budget reports are normally submitted by department heads to provide the executives of the company the information they need to run the company. An example would be ...
The types of reports that you would expect are involved in tracking income streams are determined.