Case Study

Recognition of Revenue for a Subscription Model

This e-sports and gaming company came to GrowthLab for financial clarity. Despite strong traction, their accounting records were misaligned—especially around subscription revenue recognition. With complex revenue streams and a growing customer base, they needed structure, accuracy, and forward-looking financial controls.

Challenge

Lack of Financial Clarity, Fragmented Bookkeeping, & Stifled Growth

Industry

Gaming & E-Sports

Services

• Revenue Recognition
• Accounting Systems
• Working Paper Design

Upfront Revenue, Misaligned Financials

As a subscription-based business, the company collected most revenue upfront but failed to correctly accrue it over time. This led to significant discrepancies between cash and accrual P&Ls, throwing off financials, tax filings, and internal forecasting. With limited industry benchmarks and evolving standards in gaming, the team needed guidance grounded in financial rigor.

Accrual Accuracy and Documentation Discipline

• Rebuilt revenue recognition schedules for all payment types and subscription terms
• Cleaned and organized working papers to reflect GAAP-compliant accruals
• Implemented systems and controls to differentiate between accrual vs. cash-based financials
• Provided ongoing support to ensure tax and P&L alignment

By documenting everything clearly and systematically, we turned confusion into consistency.

Scalable Revenue Recognition and True Profit Visibility

With sports reopening post-COVID, the company rebounded fast—and this time, they had accurate financials to match their momentum. All revenue is now tracked and reported correctly, enabling better cash flow planning and cleaner tax filings.

More importantly, leadership now has real visibility into profitability by product and time period, supporting smarter investment and operational decisions.

Advice for Other Business Leaders

Don’t let growth outpace your accounting.

You need:

1. Accurate accrual-based revenue schedules
2. Clean working papers with audit-ready controls
3. An eye on cash vs. GAAP impacts from day one
   

Final Thoughts

GrowthLab helped this gaming business replace guesswork with discipline, laying the financial foundation they needed to scale confidently and sustainably.