According to CFO Magazine, 48% of businesses with a recurring revenue model struggle to meet accounting and reporting challenges. Keeping track of your company’s revenue flow is tricky, but revenue accounting automation software can help streamline the process. It manages the details of each revenue contract in accordance with your revenue policies and compliance requirements like ASC 606 and IFRS 15.
The right revenue automation software system allows your finance teams to forego tedious manual tasks, like managing a multitude of spreadsheets and re-entering or uploading revenue data into your core finance tools. This means you can control your company’s revenue efficiently while dedicating more time to strategic initiatives.
Even better? We’re about to break down some of the most agile, intelligent options on the market so you can choose the right software system for you.
Why Use Accounting Automation Software?
Simply put, revenue accounting automation software gives you convenient access to revenue data and creates efficient, streamlined systems for managing complex accounting calculations.
The right software can also automate every step of your revenue management, from the initial revenue recognition process to generating detailed revenue insights and waterfall reports in real-time that can support your financial planning.
Your accounting software is also critical to your financial compliance, supporting your ability to prepare disclosure requirements, meet performance obligations, and audit your general ledger. The right revenue recognition software will put your accounting compliance on auto-pilot so you can focus on growing the business.
Benefits of Automating Revenue Accounting
Automating revenue recognition and revenue accounting works by establishing rules for your sales contracts to determine how to treat revenue for each transaction. By using automated revenue accounting tools, you can take control of recognizing revenue and develop a self-sustaining process for your revenue management.
In fact, with the power of automation, you can tap into benefits like:
- Improved compliance with industry regulations
- Faster, more efficient data processing than spreadsheets
- Increased accuracy by minimizing human error
- Cost savings from eliminating tedious manual data entry tasks
- Focus on strategic initiatives that grow revenue instead of mind-numbing data entry in spreadsheets
Key Features to Look for
The benefits of automating revenue accounting speak for themselves, but to experience them, it’s critical to look for software systems that can support your company’s long-term growth.
Carefully assess your options by considering these key features:
- Ease of use: Quality revenue tools provide a simple, accessible interface that provides valuable revenue data available in real-time.
- Scalability: Find revenue accounting providers that can process large amounts of revenue data to ensure your accounting systems can scale alongside your growing business.
- Robust out-of-the-box functionality: Look for software tools that offer robust out-of-the-box features so you don’t have to customize the solution with custom scripts and workarounds to fit your needs.
- Cross-platform integration: The best revenue tools are designed to be compatible with your upstream and downstream systems like order, billing, and ERP systems.
- Lightweight and flexible configuration: Explore how you can easily adjust the rules and guidelines of your revenue software to fit with your company’s business model, pricing model, accounting style, and long-term business goals.
Top Revenue Accounting Automation Software Systems
Consider these top solutions if you’re ready to experience how revenue recognition software automation can transform your business.
RightRev
RightRev’s ASC 606 solution is a scalable, highly performant revenue recognition software that tracks and manages your company’s revenue. It provides a compliant structure for handling your revenue while offering advanced adaptability to align with your company’s unique needs.
With the ability to process hundreds of millions of transactions in just minutes, RightRev is particularly well-suited for mid-size and enterprise-level businesses. While RightRev’s advanced features and full-stack functionality may not be appropriate for companies just starting or that have more straightforward use cases, businesses seeking to grow their operations can benefit from the long-term scalability of the product.
Zuora Revenue
Zuora Revenue is an established name in the revenue automation sector, providing its customers with reliable solutions for various use cases. However, Zuora can require more up-front technical configuration and customization to meet complex requirements. And, while Zuora eliminates manual processes, its period-end reporting can take longer than some competitors.
RightRev’s founder is the original founder of RevPro by Leeyo, one of the first-to-market revenue automation solutions. He sold RevPro by Leeyo to Zuora in 2017, which is now known as Zuora Revenue.
NetSuite ARM
With NetSuite Advanced Revenue Management (ARM), you can enjoy a convenient revenue automation solution as part of the extensive NetSuite package. It easily integrates with other NetSuite tools, allowing you to build interconnected financial infrastructure for your accounting teams.
However, NetSuite ARM has limitations regarding revenue reporting, recurring revenue models, and complex requirements like ramp orders and contract modifications. Because of this, it’s best for companies with straightforward accounting needs and minimal reporting requirements. If you’re looking to solve your complex revenue recognition use cases in NetSuite ARM, you’ll spend a significant amount of time and resources customizing the solution with SuiteScript to fit your needs. For more on the differences between RightRev and NetSuite ARM, read our blog “Modernizing Revenue Management with RightRev + ERP.”
Maxio
Maxio makes it easy for small and medium-sized businesses to simplify their revenue management. It automates processes to recognize revenue, helping companies organize their finances and develop an accurate snapshot of their revenue flow.
However, its simplicity is both a selling point and a potential limitation, as small businesses may eventually develop more complex revenue recognition automation needs.
Experience the Power of Automation With RightRev
Revenue accounting automation software takes one of the most tedious systems in any business and transforms it into a strategic tool. You can get an accurate view of your revenue data and manage your day-to-day revenue operations within a single dashboard.
Plus, with RightRev, you can easily configure the solution to align with your accounting methods, revenue recognition policies, and reporting needs to keep you on top of your financial picture. Watch a quick demo to explore how automation can enhance your business.
Overall, automating revenue accounting can help you save time and reduce errors while also providing valuable insights that can help you make more informed decisions. As a CFO or Controller, it’s important to consider how automation can help you achieve your goals and drive long-term success for your organization. After all, the cost to restate revenue or failing an audit heavily outweighs the cost of automation.
The key is focusing on technology investments that deliver value, long-term cost savings, and, solid ROI. You should choose a solution that is easy to use and integrates with your existing software to reduce data-entry work and increase efficiency.
Also check out: How Automating Revenue Recognition Works
