This meeting was a comprehensive webinar led by David (RevenueCat) and Ariel (Appfigures) focused on explaining the intricacies of app store payments and accounting, especially for mobile app subscription businesses.
Topics included the detailed flow of transactions and payments in Apple and Google app stores, the timelines and complexities of settlement, financial reports, handling taxes and compliance, and the differences in accounting methodologies.
Key differences and overlap between RevenueCat and Appfigures were clarified, with in-depth discussion on the nuances of transaction data, reporting, and reconciliation.
The session ended with an extended Q&A addressing real-world issues, tactical workflow questions, and industry-wide changes affecting developers' revenue attribution and accounting.
Action Items
None noted with specific owners and due dates in the transcript.
Overview of App Store Payment Flows
Ariel (Appfigures) and David (RevenueCat) introduced their respective backgrounds and companies, clarifying the distinct roles each platform plays in the app ecosystem.
Apple’s transaction flow is complex: transactions can remain pending, be grouped, and are only settled when the credit card is successfully charged, which can lead to delays and unpredictability for revenue recognition.
Pending and settlement periods can cross fiscal/calendar months, and failed or canceled transactions can retroactively affect developer revenue.
Apple's payment cycles are determined by a unique fiscal calendar, often with a lag of up to 68 days from when a user pays to when a developer receives funds.
Google Play’s payment process is simpler, with more predictable timelines and currency conversions happening at the time of transaction.
Taxes, Compliance, and Global Payments
Apple handles VAT and sales tax collection and remittance globally, simplifying compliance for developers using their system, but removing transparency for those needing detailed accounting data.
Google’s approach is less standardized, sometimes requiring developers to manage taxes themselves, with reporting that can be harder to reconcile.
For web-based payments (e.g., Stripe/Braintree), developers are responsible for all compliance and tax handling, making legal/accountant consultation necessary.
App Store Payment and Financial Reports
Apple provides multiple reports:
Daily reports for near real-time tracking, but these lack refund/chargeback adjustments and can differ from ultimate payout.
Financial reports per region at the close of each fiscal month, reflecting settled transactions but not final currency conversions.
Payment reports (the "source of truth") post-payout, containing full transaction detail, final exchange rates, and all adjustments.
Appfigures and other tools aggregate these reports to help developers reconcile revenue across apps, SKUs, and time periods.
True transaction-level reconciliation is not possible because Apple omits persistent unique transaction IDs, primarily for privacy reasons.
Accounting Methodologies (Cash vs. Accrual)
Cash-based accounting (used by many small businesses): revenue is recorded when payment is received.
Accrual-based accounting (needed for larger entities): revenue is recognized when the transaction occurs, necessitating complex reconciliation, particularly due to Apple’s delayed and batched payout structure.
Apple’s evolving reporting (including in-process financial reports and future transaction tax reports) aims to improve transparency and align with growing business needs.
Subscription Workflows and Cross-Platform Payments
Apple and Google have diverging data capabilities for subscription status, dunning (retrying failed payments), and grace periods.
RevenueCat enables customer-level subscription management and cross-platform entitlement by managing identity and receipt data, necessary for SaaS apps that allow web or Android payments alongside Apple subscriptions.
Complexities arise when anonymous IDs or shared Apple IDs are used, complicating subscriber count and entitlement reconciliation.
Decisions
Payment report is the only source of truth for accounting — Due to timing of settlements, currency fluctuations, handling of refunds/chargebacks, and Apple’s privacy constraints, developers should use Apple's payment report for final, accurate financial accounting.
Open Questions / Follow-Ups
Best practices and technical solutions for cross-linking Apple transaction data to developer-managed user accounts remain unresolved due to privacy restrictions.
Handling of proration and local regulation for annual subscription refunds in certain jurisdictions will require continued monitoring; Apple’s workflows and local consumer uptake remain uncertain.
VAT handling and improved reporting in RevenueCat is a known issue under active development.
Unanswered workflow-specific questions (e.g., about RevenueCat's identity system, anonymous users, refund events, and third-party integrations) were referred to product support and documentation for further detail.