Refunds, Credits, and Clean Reconciliation
Written by Harry Prabandham
Curated by Rubric Financial
Last updated
1 / 5
Refunds Versus Credits
- A refund returns actual cash to the customer, reducing both your bank balance and recognized revenue.
- A credit reduces what a customer owes on future invoices without moving any cash today.
- Credits are common for service issues, downgrades, or goodwill where the relationship continues.
- Choosing the right instrument matters because each hits your cash, revenue, and deferred balances differently.
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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