Revenue Recognition

Advanced Revenue Recognition Software In Compliance with ASC 606 and IFRS 15

Few companies were prepared for the sweeping changes brought on by the ASC 606 and IFRS 15 guidance and were forced to move key revenue recognition processes to spreadsheets or customizations. The SOFTRAX Revenue Management System (RMS) helps manage even the most complex components of the guidance, through a multi-tenant cloud software solution that increases back-office automation to streamline every aspect of revenue recognition. Now companies can efficiently and effectively manage complex regulations and gain unprecedented visibility to business performance.

Streamlined Revenue Recognition

Automate, comply, and simplify ASC 606 and IFRS 15
Increase back-office automation to streamline revenue recognition
Eliminate spreadsheets and workarounds

Download the SOFTRAX Revenue Recognition Data Sheet to learn more.

The Benefits of the Right Revenue Recognition Solution

Extended Capabilities without spreadsheets

SOFTRAX RMS is an automated, cloud-based solution that eliminates spreadsheets and workarounds, reduces human errors, and increases the agility of your back office.

Focus on Strategy, Not Tactics

SOFTRAX RMS automates your most complex revenue management processes so your finance team can focus their skills on strategic analytical tasks, conﬁdent that day-to-day tactical functions are being executed efficiently, accurately, and compliantly.

No Rip & Replace

SOFTRAX RMS easily integrates with your existing ERP, CRM, and CPQ systems so you can implement the most robust management platform without the need for large platform customizations or replacement.

Robust Automation

SOFTRAX RMS introduces enterprise-level automated functionality to streamline the revenue recognition process, automate the complex requirements of ASC 606 / IFRS 15, and advance your path toward continuous accounting.

Meeting the ASC 606 and IFRS 15 Standard Across Verticals

For some verticals, ASC 606 and IFRS 15 represent a high-level complexity. These verticals need to determine and manage standalone selling price (SSP), proportionally allocate transactions against SSP as well as handle contract modifications and conversions, variable consideration, material rights, and the significant financing component. These factors represent extreme complexity in processing, particularly where the goal is complete automation, including through change events. SOFTRAX RMS can handle these scenarios, making even the most complex scenario manageable and compliant.

SOFTRAX has more than 25 years of experience in providing billing and revenue recognition solutions, enabling us to offer the industry’s most comprehensive features. Our legacy gives us an in-depth understanding of customer needs, pain points, and areas of growth across a number of industries. SOFTRAX RMS is the only multi-tenant cloud platform supporting sophisticated billing and revenue recognition in a single application.

The Right Solution for Evolving Revenue Recognition

What Clients Say About Our Revenue Recognition Solution

"The SOFTRAX suite of products is uniquely positioned to offer the flexibility to handle the various forms of complex billing and revenue recognition we require.”

John Mathison VP of Operations

"SOFTRAX helped us capture an opportunity to operationalize the new revenue recognition guidance with automation that advanced our existing process."

Sue Chaplin Herb SVP of Finance and Financial Reporting

"Mindbody needed a platform to automate revenue recognition to meet the needs of our global growth. With the SOFTRAX Revenue Management System, we found a solution that matched our complexity and allowed easy compliance with revenue recognition guidelines.”

Chelsey Chernick VP Corporate Controller

“SOFTRAX transformed how our team works. We appreciated that SOFTRAX could easily work with Microsoft Dynamics so that we could still leverage our ERP. We also liked the level of control in reporting as well as the high standard of security that SOFTRAX offered. Finally, SOFTRAX is a solution that will grow with us as we offer new billing models.”

Jennifer Fehrmann Controller

"Through an outstanding collaborative effort with the SOFTRAX team, we improved SOFTRAX features and functionality that will help Epicor grow and scale its install base and recurring billing.”

Fabian Dohms VP of Finance Operations

"We began to see significant efficiency improvements within two weeks of go-live. We are a growing business. SOFTRAX is a Win-Win for us.”

Corey Tuner Revenue Manager

What is revenue recognition?

The revenue recognition accounting principle outlines when revenue can be accounted for in financial statements from the sale of goods or services. Revenue recognition ties into a company’s financial position and reflects profitability, but it follows a set of rules and practices. For publicly traded companies in the United States, revenue recognition is a part of the Generally Accepted Accounting Principles (GAAP) issued and maintained by the Financial Accounting Standards Board (FASB). U.S. government agencies also use GAAP, and many private companies use GAAP to standardize their financial reporting.

At the basis of revenue recognition is the realization, or accounting, of revenue, that occurs when goods or services are transferred to customers. FASB enacted ASC 606, which provides a five-step process for recognizing revenue that is tied to the customer contract. ASC 606 comprises:

Identify the contract with the customer
Identify the performance obligations in the contract
Determine the overall transaction price
Allocate the transaction price to the performance obligation(s)
Recognize revenue when performance obligations are satisfied

Why is revenue recognition important?

Revenue recognition, done properly, reflects the financial state of a company. It involves the following elements:

1. Accurate Financial Reporting: Proper revenue recognition results in financial statements that accurately reflect the company’s fiscal performance. These statements are needed for company officers and others to use for forward planning of the company’s goals, products, and staffing. They are also crucial for investors, creditors, and other stakeholders to have a current and true sense of the company’s fiscal health.

2. Compliance: Adhering to revenue recognition principles ensures compliance with ASC 606 / IFRS 15 and other provisions, which are required by regulatory bodies and financial institutions. Compliance reduces the risk of penalties, fines, and legal issues stemming from inaccurate financial reporting, and it also shows employees, customers, shareholders, partners, and others, that that company takes its financial reporting seriously.

3. Comparability: Consistent revenue recognition practices enable analysis and comparison of financials across companies within the same industry. Investors and analysts rely on this comparability to evaluate relative performance and make investment decisions.

4. Risk Management: Proper revenue recognition helps identify potential risks related to revenue streams, such as uncollectible accounts receivable and contract disputes. By recognizing revenue appropriately, companies can mitigate these risks and maintain financial stability.

5. Investor Confidence: Transparent and consistent revenue recognition practices enhance investor confidence in the company’s revenue reporting, leadership, and future.

How can SOFTRAX RMS help with revenue recognition?

As a multi-tenant cloud-based solution, SOFTRAS RMS automates every aspect of revenue recognition, including compliance with ASC 606 / IFRS 15. In addition to helping SaaS companies and subscription businesses meet compliance reporting, SOFTRAX RMS offers unprecedented visibility into the revenue that drives business performance. With SOFTRAX, a company’s finance team can focus their skills on strategic analytical tasks conﬁdent that day-to-day tactical functions are being executed efficiently, accurately, and compliantly.