My business sells a service which is subscription-based.
For example it offers 3-months plan of the service for which the company charges the whole price upfront at the beginning of the 3 months period.
The plan automatically renews for additional 3 months unless the customer cancels.
Shall I include the future renewals in the Accounts receivable line item in the Balance Sheet?
On the same note: If I prepare the Balance Sheet during the first month of a client's three-months plan, shall I treat the remaining two months as Accrued Liabilities in the Balance Sheet?