What is revenue automation software and why is it needed? This is a question that many businesses are asking today. Before anything else, we need to establish what revenue automation refers to and why it is required.
The Need for Revenue Automation
How many hours in a day do people in your organization typically spend on revenue recognition tasks such as entering data, reading through the lines and performing calculations (or miscalculations) in an Excel spreadsheet? Two, three, or five? Even if they excel at their job, people performing revenue recognition manually will be found wanting at some point in the process. Not only are manual revenue recognition processes long and complex, they are also prone to errors.
Accounting and revenue recognition are more complicated than ever before and to add to the woes, auditors today investigate financial records in great detail. To make matters worse, existing financial systems are finding it difficult to keep up with the evolving revenue recognition regulations. The solution? revenue recognition automation.
While complexities around revenue recognition will always remain, revenue recognition automation makes the task less troublesome. By automating the revenue recognition process, revenue recognition automation increases the efficiency and productivity of the process while saving the business valuable time which it can dedicate to other important tasks.
With revenue automation software, you can gain complete control of your revenue recognition process and easily manage all your revenue recognition needs including deferred revenue, complex allocations, and fair value determination—without any custom code or spreadsheets. The basic purpose of this software is to eliminate the human element in the revenue recognition process and automate the entire revenue lifecycle. A great way to automate and optimize processes, the use of automation software impacts revenue and make data available for real-time decisions/actions. So, how does revenue automation work?
How Revenue Automation Works
What are the first and last weeks of the month like for your revenue team? Intense? Tiring? Troublesome? If you said yes to any of them, then your organization is like most businesses—businesses where a lot of scrambling and preparing and the re-scrambling and re-preparing is happening at the start and end of each month to have things in place before the revenue reporting deadline. Want to put an end to this? Then make the shift to revenue automation.
- In addition to transparency of data, revenue automation ensures increased accuracy, faster closes, improved forecasting, improved reporting and compliance throughout the process. Following is how revenue automation works:
- Extract data from your Excel spreadsheets, CRM or ERP modules, or other systems and upload it to the software
- Application of the revenue policies across all lines of data by the software to automatically produce your revenue calculations
- Recognition of schedule revenue at the appropriate time to ensure the business’ alignment with revenue recognition policies
- Utilization of accurate revenue calculations to generate intelligent financial reports, disclosures, and gain business insights
- Ensures process documentation, process improvement and quality assurance
Interested in revenue automation software? Then get in touch with CallidusCloud today!