Revenue Recognition Insights

One of the reasons modified contracts are so critical, despite being overlooked, is that they’re inextricably connected to revenue recognition. Contract modifications are examples of revenue recognition principles at work, as changes to an agreement could impact when or how revenue is calculated. They’re a major reason SaaS and other service-based companies fall into ASC compliance issues when neglected.

Frequently Asked Questions about RightRev’s Standalone Revenue Recognition Solution

The milestone method allows companies to recognize revenue when specific, predefined milestones are reached during a project (a revenue recognition event). These milestone events are typically tied to significant achievements, such as completing a project phase, meeting contract deliverables, or hitting performance targets.

In a recent fireside chat at a conference, industry leaders Jenn Meehan (CGO of Neocol), Jagan Reddy (CEO and Founder of Right Rev), and John Griffin (CRO and Co-Founder of M3ter) discussed the evolving landscape of consumption pricing and the operational challenges surrounding billing and revenue recognition. Here are some key insights from their conversation.

Now, modern software solutions have managed to automate even more complex tasks, alleviating accountants of pain-staking, highly manual processes so they can focus on strategic efforts that provide valuable guidance to the business. Plus, given the accounting shortage, automating cumbersome accounting tasks and processes can help retain accountants and allow them to concentrate on value-add tasks.

This guide explores the ins and outs of recognizing revenue in the construction industry so firms can navigate them successfully. By mastering revenue recognition, construction companies can avoid pitfalls, bolster their credibility with stakeholders, and achieve sustainable growth.

Epicor’s success story with RightRev demonstrates the power of innovative revenue recognition software in tackling the complexities of modern revenue management.

Cost recovery accounting is highly effective in industries where actual income is uncertain until secured—such as retail and sales. This guide delves into their purpose and function, provides implementation guidance, and explores a few prime examples of the cost recovery method in action.

In this guide, we dive into subscription revenue accounting to help you ensure accurate revenue recognition and sound financial health.

The POC method to recognizing revenue considers the revenue and expenses of long-term projects compared to the amount of work completed as the project progresses. POC is essential in the construction industry, as waiting years to recognize revenue may defy Generally Accepted Accounting Principles (GAAP) and lead to more confusion and potential for errors.

Strictly defined, performance obligations are simply the promise itself rather than the actual delivery of the contractually agreed-upon task. Another key concept is buried in the word “distinct.” Essentially, this means the deliverables must benefit your customer.

In a recent fireside chat at Dreamforce’s Revenue Cloud Lounge, Jagan Reddy, CEO and founder of RightRev, engaged with Jenn Meehan, Chief Growth Officer of Neocol, to unpack the evolving landscape of accounting—particularly the intertwined processes of booking, billing, and revenue management.