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Revenue Controller, Acquia
Sage Intacct’s revenue recognition solution lets us keep everything centralized, even though we’re managing fairly complex, multi-subscription contracts on annual or quarterly billing schedules. The system does a good job of handling different revenue recognition templates for each subscription type – improving our whole order-to-cash process and increasing the accuracy of our financial data. Now, when our sales team closes a deal in Salesforce, order details are automatically added to Sage Intacct, my team validates the revenue schedule and then generates an invoice in just five minutes.
Revenue recognition is the accounting process that companies use to recognize revenue earned by a product or service provided.
Revenue recognition is important because it maintains the integrity of your company's financial reporting, by standardizing how you record revenue so you can measure quarter-to-quarter performance consistently.
Beginning in 2018 for public companies and 2019 for private companies, the Financial Accounting Standards Board's (FASB) and International Accounting Standards Board (IASB) new ASC 606 and IFRS 15 revenue management guidelines will require companies to identify performance obligations in existing contracts, reallocate revenues each time a customer contract changes, and defer expense recognition to align with the contract's delivery. As a result of these changes, contract add-ons and renewals must be integrated into a single contract and will trigger reallocations across both past and future periods—causing continuous revisions to revenue allocations and expense alignment.
Ideally, there are six key features that SaaS accounting and revenue recognition software should include:
Be able to automate revenue allocation.
Connect billing and revenue recognition.
Use dual reporting for preparation and compliance.
Sync with upstream CRM and contract processes.
Provide visibility for all key stakeholders.
Speed adoption with true multi-tenant cloud architecture.
Luckily, your path to ASC 606 and IFRS 15 compliance starts with Sage Intacct. Sage Intacct natively supports the new rules, lightening the burden on your finance staff with automated revenue recognition built in.
Sage Intacct has a revenue recognition module built on Sage Intacct Core Financials. Revenue recognition software removes the complexity, time, and frustration associated with revenue recognition.
Our subscription revenue management software simplifies revenue management. Automatically recognize revenue using templates and schedules to meet accounting standards even as contracts change. And flexibly configure expense amortization to match or differ from revenue recognition terms.
The key benefits of our Revenue Recognition software include:
Automate day-to-day revenue recognition tasks and regulatory compliance
Align revenue recognition with expense allocations
Automate your most important process – turning orders into cash
Many public and private companies still use spreadsheets for critical revenue management tasks, which takes up a lot of time and is error-prone. Revenue recognition gets complex fast, especially when you consider multiple entities, subscriptions, licenses, services, etc., exposing a large number of issues from compliance, to audits, to proper forecasting. SaaS businesses must get revenue recognition right every time.
Cloud-based revenue recognition software helps your business manage revenue recognition with ease, so you can say goodbye to those unaudited spreadsheets and manual reconciliations. Sage Intacct translates your sophisticated revenue recognition requirements to simplified, streamlined workflows to get you the results your business requires.
With Sage Intacct's revenue recognition process, you will:
Strengthen compliance and achieve consistency throughout your organization
Control deferred-revenue transactions and see the impact on reporting and forecasting