What to Know about Standalone Selling Price for SaaS Companies
The ASC 606 / IFRS 15 revenue recognition standard can be complicated for technology companies, especially for those with Software as a Service (SaaS) offerings. The business model of SaaS companies can often trigger the need to follow a number of complex components of the ASC 606 / IFRS 15 guidance. For those companies selling […]
Consumption billing can force SaaS companies to conform to the variable consideration guidance in ASC 606
Consumption, or usage-based, billing models charge customers based on the quantity or usage of a product or service. The model has become increasingly popular in the SaaS business environment, where the rise in consumption billing is a natural next step after adoption of basic fixed-fee, subscription billing. Currently about 90% of public SaaS companies have subscription-based […]
Where are the Auditors: ASC 606 and Recognizing Subscription Billing Revenue
Since ASC 606 and IFRS 15 have taken effect, auditors, particularly in the private sector, have had a soft touch in enforcing some of the most complex portions of the guidance. Many companies moving to subscription bill models are not even aware these complexities exist. With the rise in comment letters seen in 2022, and […]
ASC 606 Solutions for the Professional Service Industry
ASC Topic 606, Revenue from Contracts with Customers, adds a new series of hurdles for businesses with the new five-step framework to the revenue recognition process. With the expansive challenges to financial reporting and internal control systems the new standard poses, companies need to consider the best revenue recognition solution for them with capabilities to […]
The Effects of Recurring Revenue Business Models on Revenue Recognition
SOFTRAX partnered with Aria Systems in the summer of 2021 for the live webinar, “Recurring Revenue Ripples Through Revenue Recognition” to discuss how agility in serving customers with recurring revenue business models and precision and flexibility in revenue recognition go hand in hand. Senior Vice President and General Manager, Tom Zauli of SOFTRAX hosted this […]
ASC 606 and Challenges to the Healthcare Industry
It’s no surprise that the healthcare industry is facing unique and disruptive challenges that are affecting areas such as productivity, revenue cycle, and supply chain on a major scale. Given the current market, healthcare entities may find themselves strapped for resources ranging from supplies to staff, grappling with changes to insured populations, or even struggling […]