What is Revenue Recognition Automation?

RevStream Marketing About The Author

Sep 28, 2015 8:00:00 AM

 

ExcelHell.pngCountless hours spent on data, lines and calculations (or miscalculations) in an Excel spreadsheet – we like to call this Excel Hell. Yes, we know your struggle, revenue recognition professionals! 

 

Although you “excel” at your job, we know the process of manual revenue recognition management can be complex, long and more than frustrating.

 

Here is a helping hand

Wouldn’t it be nice if there was a tool that could lend you a helping hand? A tool that could free up your time for other pressing projects, make you more efficient around your revenue management process, and make you more confident in the accuracy of the numbers you’re reporting?

 

We have an answer that can do all of this and more – it’s called revenue automation.

  RevenueAuto.jpg

 

What is revenue recognition automation?

In simple terms, revenue recognition automation is a software that takes the manual labor out of the revenue recognition process and automates the entire revenue lifecycle. It is a systematic way to optimize and automate processes that impact revenue and provides data for real time intelligence. So how does that affect you as a revenue recognition professional?

 

Don’t get us wrong, there will always be underlying complexities around revenue recognition. But automation makes your job that much easier. With automation, you become more effective and productive, enabling you to devote resources, like new found time and money saved, into other projects.

 

How does revenue automation work?

The last and first weeks of every month are intense for revenue teams. There is a lot of scrambling and preparing, then some re-scrambling and re-preparing as the deadline for reporting revenue inches closer and closer by the minute. Productivity and efficiency are at a minimal because all of your time is focused on one task: getting those numbers in. LegalZoom made the leap to revenue automation and saw a huge difference in transparency of data.

“Our legacy system did not provide the speed and automation we need to run our dynamic business,” says Gary Mark, Director of Revenue Accounting at LegalZoom. “Now, with RevStream, we have a completely transparent system that easily understands our product mix.”

Now picture this: faster closes, increased accuracy, improved reporting leading to improved forecasting, and compliance throughout the entire process. That’s exactly what revenue recognition automation can give you.

 

How revenue recognition automation works

 

  1. Take your data from your sources, whether you utilize ERP or CRM modules, billing systems, Excel spreadsheets, or other systems, and upload it to the software. 
  1. The software then applies your revenue policies across all lines of data and automatically produces your revenue calculations for you. 
  1. You may have revenue deferrals. Automation allows you to schedule revenue to be recognized at the appropriate time so that you are aligned with revenue recognition policies.
  1. Now, utilizing your accurate revenue calculations, you can create intelligent financial reports, disclosures, and gain insights into your business.
  1. And finally, you’ve cut down your period-end close significantly, now allowing time for quality assurance, process improvement, and process documentation.


The commonality between revenue teams seems to be in the struggle – the high-risk process of manual Excel Hell. This is just a quick snapshot of what revenue automation is all about. When you get down to the real nitty gritty, every company has a unique revenue recognition process.

 

With revenue recognition automation, revenue professionals are transforming the way they do their jobs.

 

Start off your path to revenue recognition automation with these dowloadable worksheets

  Worksheets

 

Need a little more convincing? Watch our video down below and put yourself in Jack’s shoes!