Revenue Management Made Simple

Revenue Management Made Simple

Resources

by | Sep 18, 2018 | Resources

Revenue Management Made Simple

By Paul Johnson
CPA, CGMA, MBA

How to Win the Revenue Management Game

Revenue management is a top challenge for many finance professionals—especially those working in software-as-a-service (SaaS) and professional services companies. The new revenue recognition criteria, known as ASC 606, adds even greater complexity. It’s no wonder that companies are seeking to automate their revenue management processes so they can be more efficient, get more compliant, and improve visibility.

a business team of four people sitting at a table to discuss revenue management. A female with short hair leads the discussion

Design better processes

Successfully streamlining revenue management requires a two-pronged strategy, starting with better processes designed from the top down. Since revenue management is an enterprise-wide affair, these processes should be based on input from senior executives across multiple disciplines and functions.

Here’s how:

  1. Define the revenue recognition foundation, such as determining what a subscription is, what falls under “maintenance” or “support,” and what discounts you’ll permit.
  2. Establish fair value pricing criteria using market-tested parameters and centralized data.
  3. Involve auditors in these process designs and policy definitions.
  4. Use standard contracts with defined terms.
  5. Enable collaboration and information sharing across sales, service, and finance.

an older asian man working on his laptop

Invest in the right technology

Automating revenue management yields significant benefits, from faster period closes to greater accuracy and lower costs. To streamline and centralize the management of revenue accounting, businesses need technology that allows the finance team to:

  1. Connect systems. The best accounting systems connect to critical business systems within the organization, such as CRM, services management, and subscription management to create a complete ecosystem for revenue management.
  2. Automate processes. Revenue managers need the ability to codify the applicable rules through flexible templates and schedules that reflect their unique business requirements. The process must drive the automated calculation of both recognized and deferred revenue schedules and forecasts based on contract terms, subscription length, project milestones, and more—and integrate with the general ledger.
  3. Analyze the business. The best revenue management systems deliver a solid picture of both current and deferred revenue by showing a real-time snapshot of future revenues, projected renewals, and total deferred revenue months or even years into the future. You should be able to dig deep to truly understand your business, with visibility into both financial and operating data, and have the flexibility to view the business through multiple lenses to make better strategic decisions.

Master revenue management with Sage Intacct and Atlasphere Consulting

Sage Intacct automates and improves the processes associated with complex revenue recognition. Sage Intacct is the cloud-based technology that allows your finance team to connect systems, automate processes, and analyze your business. Contact us at Atlasphere Consulting; we’re Sage Intacct experts who can develop a winning strategy for conquering the challenges of revenue management for your business.

Three Techniques Data-Savvy CFOs Use To Meet Timing Demands

Three Techniques Data-Savvy CFOs Use To Meet Timing Demands

Resources

by | Jul 24, 2018 | Resources

Three Techniques Data-Savvy CFOs Use To Meet Timing Demands

By Paul Johnson
CPA, CGMA, MBA

It’s no secret that demands from financial services for more data in a shorter time frame are increasing rapidly. As consumer expectations and preferences change as quickly as the tides, business is expected to keep pace with that fluctuating demand.

According to an Aberdeen study, 64% of business managers noticed their decision-making time shrink. Aberdeen also found in a separate study, that 28% of business managers found they needed decision-making data within one hour of a business event, and another 42% needed data within a day.

In light of those statistics, it’s clear that now more than ever, that if financial services CFOs are to keep up, they need faster, and more in-depth, yet accurate methods for data retrieval and analysis. With Sage Intacct, they can do it in three innovative ways.

a group of coworkers working on workplace timing demands

1. Faster book closings for real-time reporting

When books close faster, monthly and quarterly financials more quickly provide answers for faster decision-making.

2. Aggregate data from disconnected systems to boost analysis

CFOs that have the most answers will pull data from outside of their financials. They examine operational data for a more comprehensive analysis of company performance, and they do that through the cloud.

With the cloud, CFOs can see a more panoramic, yet in-depth view of performance. The cloud can join financial systems with the other key solutions a company uses, from anywhere in the world that has an internet connection.

  • This method reduces data entry and improves accuracy, without breaking a connection with data, as spreadsheets do.
  • Templates can be used to repeat the analysis without repeating setup, or having to reconcile data throughout the company’s various solutions.

a young man working on timing demands

3. Use dashboard reporting to speed decision-making

Customizable dashboards mean CFOs can set their unique KPIs to display in real-time, all at once, from one screen. The data that drives your decisions is available 24/7/365 with financial and non-financial data, for strong growth strategy, and more comprehensive, accurate answers.

Strong cloud-based financial management solutions, like Sage Intacct, help uplift data driven CFOs to do more in less time with everything they need to get up and running with their financials to meet demand.

We want to help you stay on top of your data to get the answers you need when you need them. Give us a call – we are here to help!