How can I improve revenue recognition?
For companies which issue annual or quarterly invoices, revenue recognition can be complex. Finance teams typically build large complex spreadsheets to track each invoice and each line within an invoice.
These spreadsheets quickly become unwieldy. Contract terms are changed. Credit notes are issued. Free or discounted products are added or removed. Tracking these items manually can require days per month.
Even for the best finance teams, spreadsheet errors are inevitable, and it is impossible to share a live view of revenue with the business.
And then there’s the audit, which requires checking and confirming each line in the spreadsheet, another laborious process during a hugely busy period.
How ScaleXP streamlines deferred and accrued income?
Why is ScaleXP the best solution for accrued income?
ScaleXP provides a real time view of revenue creating a host of benefits:
Close up to 2 days faster.
ScaleXP ensures that finance is always in control of revenue data.
ScaleXP provides a continuous accurate view of revenue, eliminating the need to wait for spreadsheets to be updated and journals to be entered.
Tracking actuals v. budget or latest forecast becomes so easy.
Budgets and forecasts can be tracked in ScaleXP, either through a direct feed from your accounting system or through an Excel upload to the system. Up to 10 forecasts can be tracked and moving seamlessly between them is as simple as a click.
Can I automate accrued revenue with Xero, QuickBooks or Sage?
Can I calculate accrued income with other currencies?
The system works across currencies and countries.
What if I issue a credit note?
The ScaleXP system will recognise and spread revenue from invoices and credit notes. It automatically detects modifications to invoices and adjusts the allocation of revenue when required.
Accrued income FAQs
Accrued income, or accrued revenue, is revenue which has been invoiced but not yet ‘earned’, for example an annual invoice sent at the start of the year.
Accurate revenue recognition for accrued and deferred income is essential for performance analysis and forecasting, but many organisations still rely on spreadsheets and time consuming manual processes for deferred and accrued revenue recognition. ScaleXP offers a cost effective alternative.
Accrued income is revenue invoiced but not yet earned, such as when an invoice is issued at the start of a contract.
Deferred income is the opposite, when an invoice is sent at the end of the contract.
Accrued income can also be called accrued revenue. Deferred income can also be called deferred revenue.