When combing through financial statements, revenue numbers are almost always a focal point. It’s crucial that your revenue is properly and accurately recognized, measured, and presented – so that your organization is working with the right data to conduct business. There are various methods of revenue recognition, but not all of them are appropriate for every business model.
Today’s increasingly complex business models have become the norm. The single revenue model—one product, one price, one time—is a dying strategy. Instead, businesses must offer flexible and personalized pricing, billing, and even monetization options. Revenue recognition–itself a complex process–has gotten even more challenging. It’s not just the revenue methods to track, but also having to factor any ever-changing accounting standards and regulations.
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Centralize revenue streams in a single revenue recognition solution. Get compliant with the new ASC 606 & IFRS 15 standards. Automate calculations, reduce your period-end close and gain a complete picture of your organization’s revenue – both recognized and deferred.
Finance teams often rely on Excel because their ERP platforms are missing key features. For example, a growing number of businesses have introduced subscription-based and hybrid pricing models. But many popular ERPs do not support them, or they require clunky, bolt-on solutions. For example, building spreadsheets to accurately recognize revenues per ASC 606 guidelines, is an extremely time-consuming exercise for finance teams and may require contracting third-party experts, increasing audit fees, or even hiring more staff. Maintaining these spreadsheets, scrubbing data, and running reports can fully occupy your finance team and take them away from strategic planning.
By nature, spreadsheets are not designed to synchronize with source data in real-time, so the data they contain is most often out-of-date. Moreover, refreshing that data typically requires manually extracting and normalizing many different sets of data from multiple subsystems—an extremely time-consuming process. For example, creating a simple revenue forecast might require pipeline data, contract data, sales orders, billing terms, and more.
Also, spreadsheets are not designed for collaboration, and they are difficult to share. When any part of your O2C process relies on spreadsheets, it can get bogged down. In fact, according to a classic Genpact study, 7–12 percent of combined revenue in working capital is stuck somewhere in inefficient O2C processes at top global organizations.1
Regardless of the business models you run on or the revenue generation methods you choose, solutions like Certinia Revenue Management give your finance team the tools required to serve the needs of an entire business – from an enterprise-class, secure, and scalable platform.
Certinia Revenue Management automates recognition calculations, eliminates error-prone, and time-intensive spreadsheets, and adheres to key revenue recognition standards. Built on the Salesforce platform, Certinia seamlessly integrates with Salesforce CRM and other Certinia ERP solutions, ensuring that all customer data is interconnected.