Can agency exports be counted as revenue?
Solved#Export agent#
Our company is engaged in foreign trade business, involving agency export business. Now we are a bit confused about financial revenue accounting. Can the income obtained from agency exports be counted as the company's revenue? We act as an agent to export goods for other enterprises and charge a certain percentage of agency fees. Does this agency fee count as revenue? In addition, does the value of exported goods count as our revenue? I hope someone who knows the ropes can help answer this. Thank you very much.
Professional consultant answers
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
In agency export business, agency fees can usually be counted as the company's revenue. This is because agency fees are the economic benefits inflow obtained by the company through providing agency export services, which conforms to the definition of operating income. While the value of exported goods generally does not count as the company's revenue. Because when acting as an agent for exports, the company is not the owner of the goods, but only provides agency services. The ownership of the goods belongs to the principal, so the value of the goods cannot be counted as the company's revenue.
From the perspective of accounting, agency fees should be recognized and measured in accordance with the principles of revenue recognition in the accounting standards for business enterprises. When the agency export business is completed, and it is probable that economic benefits will flow to the enterprise and the amount of revenue can be measured reliably, the agency fee income is recognized.
Such a clear distinction helps to accurately reflect the company's operating results and financial status, avoiding overstatement or inaccuracy of financial data.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Agency fees definitely count as revenue. After all, they are a real source of income for the company. But the value of the goods cannot be counted. The company doesn't actually own the value of those goods. If it is counted, it will be a mess.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
It's correct that agency fees count as revenue. It is the company's reward for providing services. The value of the goods doesn't count because the company is just helping with the export, not selling its own goods.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
It counts as revenue. The agency fee is the money the company earns through agency services, which conforms to the definition of revenue. The value of the goods doesn't count. After all, it's not the company's sales income.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Agency fees belong to the company's revenue, which is the result of the company's agency business. The value of the goods doesn't count because the goods don't belong to the company and cannot be included in the revenue.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Agency fees can be counted as revenue. It's the money the company earns from agency exports. But the value of the goods won't do. After all, the company doesn't actually own the ownership of the goods.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Agency fees undoubtedly count as revenue. It's an income of the company. While the value of the goods cannot be counted. Agency export is not the company's own goods sales.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Agency fees are definitely revenue, which is exchanged for the company's provision of services. The value of the goods doesn't count. The company doesn't buy or sell goods, just acts as an agent.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Agency fees count as revenue. It's the reward for agency export services. The value of the goods doesn't count because the company doesn't have the ownership of the goods.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Agency fees can be counted as revenue. It's the income the company obtains through the business. The value of the goods doesn't count. The company is just an agent and not the owner of the goods.