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 […]
IoT, Subscription Billing, and Revenue Recognition
The Internet of Things (IoT) continues its exponential growth, with IoT Analytics estimating that the global number of connected IoT devices will grow by 16% this year, to 16.7 billion active endpoints. And, according to IDC, by 2025 these devices will have generated 73.1 (zettabytes) of data. Many companies clearly have IoT offerings that are […]
Can Your Business Handle the “Subscription Billing Pause”?
The subscription market continues to thrive despite inflation and changing economic conditions, with consumers valuing subscription services for convenience and choice. What has changed are customer expectations of membership and billing options, with more consumers wanting the ability to pause a service. A study from PYMNTS found that 60% of merchants allow subscribers to pause […]
What is Milestone Billing and Why Automate the Process?
Milestone billing is a billing model popular in professional services management and companies with project-driven revenues. Milestone billing has proven to be so beneficial that leading companies like Boeing have incorporated it into their invoicing and payment process guidelines. While this event-based billing structure does have its challenges, it’s important to understand when the milestone […]
Cloud-based Revenue Management for Complex Billing and Revenue Recognition
The migration to recurring revenue business models coupled with recent changes in revenue recognition accounting guidance necessitates additional infrastructure for support in the back-office, prompting companies to look for modern, cloud-based revenue management solutions.
Mitigating the Impact of Subscription Billing with Modern Revenue Management Solutions
How to manage the challenges behind the subscription-based business model with leading revenue management software solutions. Trends from the past years consistently show that buying preferences have shifted from ownership to usership. This presents incredible revenue growth opportunities for subscription businesses and those looking to adopt the subscription business model. It also presents new 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 […]
What Is Continuous Accounting and What Are the Benefits?
Continuous accounting is a key factor to achieving a more strategic finance and accounting function in a corporation. And yet, many accounting organizations have fallen back and are reporting an increased use of spreadsheets.
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 […]
ASC 606 Effects on Cloud Computing Arrangements
Common trends in SEC comment letters for the cloud computing industry and the connections to ASC 606 revenue recognition disclosure requirements. This article explores revenue recognition solutions for the cloud computing industry with revenue recognition software and billing management software.
Break the Lock-In: When, Why, and How to Upgrade Your ERP System
Once your company reaches a certain size, ERP and financial systems become indispensable in your day-to-day operations. However, the more tightly you integrate these systems with your business processes, the harder — and more expensive — it becomes to upgrade or replace them.
Tooling Up Your ERP for the Recurring Revenue Economy
Subscriptions Aren’t Just for Magazines Anymore In fact, for many businesses—both new and old—subscription-based contracts have become the norm. If you need proof of that, look no further than the software industry. Software was once a physical product: if you wanted to purchase a copy of Microsoft Office, you would pay Microsoft, and Microsoft would […]
ERP Augmentation: What It Is and Why You Should Care
There’s something to be said for not messing around with something that works. When corporate technology expert Andy Ziegele told Profit Magazine in 2009 that companies should stick to “vanilla” implementations of their enterprise resource planning (ERP) systems as much as possible, it was at the tail end of a string of high-profile and costly […]
Getting Started with Advanced Revenue Management Solutions
In today’s marketplace, revenue information is under heavy scrutiny and is frequently audited. Reliable, accurate revenue reporting is absolutely essential for any business, particularly when it comes to complying with government regulations such as Sarbanes-Oxley.
The Hard Limitations of Spreadsheet-Based Accounting
Many companies use spreadsheet applications to sort out, store, and manage their financial data, and with good reason: spreadsheets can do just about anything, at least as regards mathematics and certainly the mathematics involved in managing financial data.
Want Financial Security and Controls? Drop Your Spreadsheets
For younger companies, spreadsheets can be an excellent stop-gap solution for many different applications. They perform valuable mathematical functions and are easy to use, store, and access. In smaller companies, they can even be successfully used to identify revenue and manage billing. However, in larger organizations, such methods simply can’t deliver the level of functionality […]
How to Shop for Complex Billing and Revenue Management Systems
Some companies need a robust billing and/or revenue management solution. Others don’t. If you run a small to medium-sized business with traditional accounting procedures and a simple billing structure, your business needs can probably be met by Microsoft Excel or a generic enterprise resource planning (ERP) system like Oracle, SAP, or Microsoft Dynamics.