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Revenue Management Strategy
A smarter revenue management strategy starts by eliminating spreadsheets
Are you looking for ways to take the pain, and spreadsheets, out of your revenue management strategy? Good idea. Too often, finance professionals like you must augment their accounting systems and processes with complex spreadsheets that fall completely outside the core financial system. That translates into lower productivity and visibility, and complicates audits and compliance.
STAT: As many as 92 percent of public companies rely on simple spreadsheets for critical revenue-accounting tasks, which creates major issues from an auditing perspective. (Source: IDC)
Why “Excel” Doesn’t…
Using spreadsheets to track revenue, deferred revenue, and renewals for complex software products and services creates more problems than it solves. Just think about some of the issues:
- Reduced staff productivity—Spreadsheets that manage revenue and deferred revenue are inherently complex and difficult to maintain. These manual processes increase the chance of errors and delay period-end closings.
- Complicated audits and increased risk of restatements—Preparing complex revenue and deferred-revenue spreadsheets for period-end auditing takes time. And, of course, like any manual process, this can increase errors, which means higher audit costs and a greater risk of restatements.
- Decreased visibility into revenue, deferred revenue, and renewal—Instead of one consolidated view of a company’s financial outlook, spreadsheets force finance professionals to refer to several different sources to obtain a complete view of revenue.
It’s time to automate your revenue management
A streamlined, centralized, and automated revenue management strategy can generate a range of benefits. The right revenue-recognition solution should handle the complexities that financial professionals confront every day. You might have thousands of different rules and templates. The right system integrates with the general ledger and helps automate revenue recognition. This automation, in turn, dramatically cuts staff workload, reduces errors, eliminates cumbersome and time-consuming transactions, and provides a single point of audit and reconciliation.
The benefits from a comprehensive, automated system include:
- Better Alignment between Sales and Finance—Sales reps and managers have a better understanding of the true impact and timing of sales on revenue. Finance is no longer hostage to side-deals and one-off agreements that create unnecessary compliance issues and added manual effort. Finance is in a better position to support renewals and upgrades by providing better, and timely, visibility into customer-account status.
- Automating Complex Revenue Recognition—The complexity remains, but properly designed and implemented systems streamline the revenue recognition and shield users from the underlying complexities. Sophisticated calculations are applied correctly and consistently — with complete auditability.
- Accelerated Closings—Say goodbye to lengthy closing delays caused by hundreds of mundane calculations and track-backs that your team must otherwise perform to ensure that recognized revenue is correct and defensible.b
- Fewer Errors—By eliminating spreadsheets, your accuracy improves greatly. There are no fragile or mysterious formulas or accidental changes that are virtually impossible to detect or trace back.b
- Reduced Revenue Leakage—By automating the revenue-recognition process and reducing the number of inaccuracies, you help ensure all appropriate revenue is captured and recognized.b
- Forecasting Visibility—You can immediately see more accurate revenue forecasts that reflect deferred revenue and predicted renewals. This visibility improves your ability to manage sales resources and to optimize future revenue.b
- Stronger Compliance—Auditors and regulators are zeroing in on revenue recognition policies and procedures. Are you prepared? Given the stakes, you can’t afford to rely on manual processes. Automated revenue management creates structured, repeatable, auditable processes that improve your company’s compliance posture in this critical area.b
Software and cloud companies that rely on spreadsheets for their revenue management strategy are creating needless risk exposure. Find out more about a comprehensive solution like Intacct. Contact us today.