How can I improve revenue recognition?
Building large complex spreadsheets to track each invoice, and each line within an invoice, can quickly become unwieldy.
Contract terms are subject to change. Credit notes are issued. Free or discounted products are added or removed.
Even for the best finance teams, errors are inevitable, and sharing a live view of revenue with the business can become challenging. Tracking these items manually can require days every month.
Automation is key to avoid the errors and time lost.
Streamline deferred & accrued income
ScaleXP streamlines deferred revenue and accrued income recognition by reading the details on each invoice and automatically spreads the revenue over the relevant time.
Through a series of complex natural language algorithms, revenue is categorised by month and then by day – revenue is allocated correctly to the day.
The system is able to do this by importing the full text on each invoice from your accounting system, with no need to retype!
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
Our customers save 2 days per month as complex accrued and deferred revenue spreadsheets are no longer required. All calculations are fully compliant with IFRS, GAAP, including IFRS 15 and ASC 606.
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.
ScaleXP is set up in just one hour
At the end of the hour, your annual invoices and quarterly invoices will be fully spread my month.
Tracking actuals vs. 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 simple.
Can I automate accrued revenue with Xero, QuickBooks or Sage?
ScaleXP seamlessly combines data from accounting platforms like Xero, QuickBooks, Sage and many more.
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 the 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.
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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.