Every Entrepreneur, Business Owner, Founder, and CEO has to care about revenue recognition for two reasons.  First, the accuracy of your financial statements is wholly correlated to your compliance with revenue recognition.  Second, your ability to gain and maintain external debt and equity financing increase dramatically.  Let's discuss...

Accurate Financial Statements
To run your business the right way, the company should be generating accurate and timely financial statements internally every month.  This is often neglected, and appropriate revenue recognition is often one of the major causes for inaccuracy.

One of the main signs that you have revenue recognition problems is if your gross margin fluctuates by more than 5 percentage points from period to period.  Here are some examples of good and bad gross margin fluctuations. Without properly recognizing revenue, you will always be in the dark about your company's performance and how you can really improve it.

Obtaining Financing

Whether you need debt or equity, most sources of financing understand revenue recognition principles in their basic forms.  If your industry typically charges annual subscription fees, then they will be looking for a Deferred Revenue account on your balance sheet.  When they do not see this being handled correctly, they will lose confidence in financing your firm. Talk with your CFO Firm on updating your records to accurately report deferred revenue.

Sources:
Wikipedia, About.com, RevenueRecogntion.com, CFO.com, and there are many more.