The complexities of SaaS revenue recognition and flexible unique contracts leave many companies wondering – am I doing this right?
In the cloud computing era with an industry shift to a services model with subscriptions, it is driving the need for revenue recognition software. If you develop software, sell SaaS contracts or multi-element arrangements, or manufacture a product with software components, you are likely facing operational complexities in accounting and tracking.
Why You Need Software to Manage Revenue Recognition and Contracts
Most accountants manage revenue recognition and contracts with numerous Excel spreadsheets or custom applications that are not integrated into one solution.
Using these methods requires a significant manual effort, which increases errors and does not provide the company with the visibility and reporting it needs to effectively manage and grow. And for companies that have complex contracts that are selling multiple elements bundled together with varying delivery schedules and pricing schemes, tracking revenue recognition becomes an even greater challenge.
Billing and revenue schedules must adjust to reflect constant changes in product mix, terms and pricing. To make matters more challenging, by using manual processes a company can run the risk of lost revenue due to ineffective or untimely tracking of renewal opportunities.
In addition, several ERP/accounting systems do not account for the revenue recognition process and handling of complex contracts. And if they do, many of them are not integrated with the platform leveraged by the company.
Does this sound familiar? Does your company seek automation, reduced errors, tighter integration, better visibility and revenue forecasting?
Solutions to Help
As a software solution and cloud services provider, we understand the complexities with contracts, SaaS, billing, deferrals, etc. Depending on your challenge, Tribridge can recommend a solution to help you manage your revenue recognition needs, multiple element arrangements, complex contract management and professional services automation.
For more information, view our latest webinar “Understanding the Complexities of SaaS Revenue Recognition” where we discuss revenue recognition and compliance issues related to the current business model for software services and applications. Or contact me at firstname.lastname@example.org.