Seeking automation of revenue recognition?
Are you feeling overwhelmed by the complexities of revenue recognition and wishing you could simplify the process while gaining more confidence in your financial reporting? Do you sell services across multiple entities with different currencies or accounting systems? ScaleXP is uniquely positioned to help. Automating revenue recognition not only saves valuable time and minimises the potential for errors but also ensures peace of mind with GAAP or IFRS compliance. It’s your tool for streamlined, accurate financials, reducing the risk and inevitable errors of manual processes like no other solution can, especially across multiple entities, different accounting systems, and currencies.
GAAP and IFRS: Transparent results globally
Your supplier and investors need to trust your financial results and reporting methods, wherever they are based. GAAP and IFRS serve as the universal language ensuring clarity and consistency. However, the detailed and complex rules of revenue recognition, a crucial part of these standards, demand accurate tracking that is nearly impossible with manual systems. ScaleXP stands out by providing the detailed workings behind deferred revenue calculations, customer by customer, and invoice by invoice, in an intuitive format that simplifies compliance.
The downside of manual spreadsheets
Handling revenue recognition manually is not just incredibly time-consuming but a recipe for mistakes. As businesses grow, so do the spreadsheets, becoming more prone to errors that can lead to compliance issues and the nightmare of redoing financial reports. ScaleXP eradicates these risks by automating the process, even across multiple entities and currencies. Plus, the time spent fixing mistakes could be better used growing your business.
Revenue rules: where "one size fits all" fails
The diverse nature of revenue, depending on contracts and the type of revenue, means one rule does not fit all. From subscription services to big service projects with milestones, ScaleXP’s smart tools adapt to different recognition rules, ensuring compliance without the hassle.
ScaleXP: your revenue recognition master
Text recognition: Decoding invoices with ease
One of the smartest things about ScaleXP is how it ‘reads’ your invoices. If you have subscriptions or contracts that cover lots of months or years with services delivered evenly across the life of the contract, this feature is a lifesaver. Normally, you’d have to carefully check each invoice and figure out when to recognize the revenue. ScaleXP does this for you!
Example 1: Imagine an invoice for a whole quarter’s worth of service. ScaleXP spots those details and knows to spread the revenue across those months, keeping you compliant without extra work.
Example 2: Got a big, multi-year contract? ScaleXP is clever enough to spread the revenue out over the whole service period, saving you from potential errors and a massive headache.
Whether it’s a quarterly service invoice or a multi-year contract, ScaleXP handles it effortlessly, providing not just automation but also the journal entries for each calculation, a feature uniquely its own.
This isn’t just about being accurate; it’s about saving you precious time so you can focus on growing your business, not doing admin.
Projects and usage? no problem for ScaleXP
ScaleXP shines when your revenue depends on project milestones or how much a customer uses your service. Unlike other automated revenue recognition software, ScaleXP has the flexibility to allow you to input revenue recognition rules invoice by invoice as well as by overarching rule, so you can control the way revenue is recognised and ensure it meets the relevant accounting standards even for complex and project-specific contracts.
Example: Let’s say you get paid upfront for a service, but revenue recognition depends on usage or finishing certain tasks. ScaleXP enables you to accurately align revenue with actual usage, making sure you only recognize revenue when it’s actually earned, aligning with your contracts. This keeps your reports accurate and reflects the real work you’re doing.
Product specific revenue recognition rules? ScaleXP loves them
Where ScaleXP gets really impressive is when you have complex rules for how revenue is handled. Your business can set up all sorts of custom rules for your specific needs, and ScaleXP follows them perfectly.
Example 1: Maybe you need revenue spread over the first four periods after the invoice, as it takes that long to deliver the value – ScaleXP will do it, no matter when the invoice was sent.
Example 2: What if you have a product for which 50% of revenue is earned in the first period after invoicing, then 25% each for the next two? ScaleXP will handle this without you needing to lift a finger.
Example 3: Even tricky arrangements, like recognizing 90% of revenue evenly over 11 periods and the last 10% in period 12, are a breeze for ScaleXP. It keeps everything compliant and spot-on.
ScaleXP is super flexible. This means you’ve got the benefits of automation without being locked into a rigid approach and can save time without sacrificing accuracy, control or regulatory compliance.
ScaleXP: more than just smart revenue recognition
Sure, ScaleXP makes revenue recognition way easier, but it also gives you fantastic reports and insights. This is about more than saving time; it’s about having the right information to make smart choices.
Financial Reports: Forget waiting for someone to put together monthly or quarterly reports! With ScaleXP, you can pull detailed financial reports instantly using the latest data from your accounting system combined with the customer and revenue insights generated by ScaleXP. Track revenue recognised as well as MRR and ARR.
SaaS KPIs: If you’re a SaaS business, ScaleXP tracks those essential numbers like Monthly Recurring Revenue (MRR), Customer Lifetime Value (CLV), and your churn rate. These are crucial for planning ahead – ScaleXP makes sure you have them at your fingertips.
Real-time Dashboards: Picture this: A dashboard showing all your key financial numbers and metrics, viewed in real time. Quickly visualise cash, profit, and customer trends and key metrics. That’s what ScaleXP delivers.
PowerPoint presentations: Download all your management reports and key insights directly into PowerPoint, automatically updated for the latest information.
Why ScaleXP is the smart choice
ScaleXP doesn’t just handle the tricky revenue recognition bits; it changes how you approach the numbers side of your business.
Saves time: Imagine the hours your team spends on manual revenue recognition. Endless spreadsheets, double-checking figures, worrying about errors… ScaleXP changes all of that. It automates the tricky calculations and rule applications, removing tedious work and freeing up your team to focus on the work that actually grows your business.
Quick, easy and cost effective to implement: Sometimes integrating a new system can be a pain with high upfront investment of time and money, but ScaleXP is different. It’s easy to set up, so you can get going quickly. Compared to other revenue recognition software ScaleXP is not just better, it’s better value. It’s an investment that pays off in accuracy, insights, peace of mind, all at low cost.
Automate your revenue recognition with ScaleXP today
ScaleXP is not just a solution for saving time automating revenue recognition; it’s an essential tool for businesses aiming for accuracy, compliance, and growth. Its unique ability to handle multiple entities, different accounting systems, and currencies, all while providing detailed insights into financials, sets it apart.
Don’t let the complexities of revenue recognition hold you back.
Book a demo of ScaleXP today and take the first step towards streamlined, cost effective and accurate financial reporting.
