What to consider when choosing revenue recognition software
Subscription revenue recognition continues to bring new challenges for businesses. The consumer demand for diverse monetization and pricing models creates a greater need for accounting automation to comply with complex revenue recognition standards, like ASC-606 or IFRS-15.
While many companies set out to develop a revenue recognition solution, this extensive task diverts their development resources from their core offerings and requires continual monitoring and updating.
Before you tackle such an endeavor, we encourage you to review and understand all the non-negotiable features of revenue recognition software. There are four major considerations when evaluating the right solution–let’s review them.
Key considerations for revenue recognition software
Effective revenue management: Strong revenue management foundation is key to improving compliance, forecasting, and resource management. You must have the flexibility and capability to manage subscription-related revenue recognition effectively.
Streamlined revenue compliance: Compliance with the ASC-606 subscription revenue recognition rules is not optional; otherwise, you’re vulnerable to audits and fines. You need automated, accurate compliance to ensure the confidence that keeps your business growing globally.
Accurate revenue forecasting: Stakeholders and investors rely on your forecasting numbers to understand the health and trajectory of your revenue–you need an integrated view of subscription plan performance, billing, and revenue recognition data.
Necessary resources and technology: From spreadsheets to audit and third-party costs, the demands are neverending when managing revenue compliance. You must have access to reliable, efficient tools that free your finance and development teams to focus on driving innovation.
Get the checklist & start evaluating
With the right ASC-606 software for revenue recognition, you free your subscription business from compliance complexities to focus on growth. While the considerations outlined above can guide you toward a solution, selecting the ideal platform requires a thorough analysis of your business needs.
As you research the best options to meet revenue recognition mandates, we encourage you to use Recurly’s checklist to decide whether to build or maintain your compliance efforts in-house or outsource with a partner.