Deferred Revenue

Automate revenue recognition and save up to 2 days per month.

Automate revenue recognition

Automate deferred revenue recognition

ScaleXP automatically recognises multi-month invoices and spreads revenue over the relevant time period. 

It does this using natural language processing algorithms to extract relevant data from the text in your invoices, such as ‘annual’, ‘year’, ‘month’, ‘quarter’ and specific dates. 

Integrating seamlessly with Quickbooks, Xero, Sage and more, you’ll save hours of tedious, manual calculations each month.

See more accounting integrations ->

Integrations updated

Automate deferred revenue recognition

Integrations updated

ScaleXP automatically recognises multi-month invoices and spreads revenue over the relevant time period. 

It does this using natural language processing algorithms to extract relevant data from the text in your invoices, such as ‘annual’, ‘year’, ‘month’, ‘quarter’ and specific dates. 

Integrating seamlessly with Quickbooks, Xero, Sage and more, you’ll save hours of tedious, manual calculations each month.

See more accounting integrations ->

Streamline revenue recognition for accuracy

Automating deferred revenue and revenue recognition creates more accurate financials, with revenue allocated correctly down to the day, without the need to maintain and update complex and time consuming spreadsheets. All details are fully auditable, easy to download, share or save.

All calculations are fully compliant with IFRS, GAAP, including IFRS 15 and ASC 606.

Accounting standard boards

Streamline revenue recognition for accuracy

Automating deferred revenue and revenue recognition creates more accurate financials, with revenue allocated correctly down to the day, without the need to maintain and update complex and time consuming spreadsheets. All details are fully auditable, easy to download, share or save.

All calculations are fully compliant with IFRS, GAAP, including IFRS 15 and ASC 606.

Accounting standard boards

Save time & close faster

Invoices are imported into the system daily with real-time calculations, so that you don’t have to wait for the month end to understand revenue in the month. 

The system also detects any changes to an invoice. All modifications, as well as credit notes, are processed automatically for an accurate view of revenue every day.

Close faster - deferred revenue

Save time & close faster

Close faster - deferred revenue

Invoices are imported into the system daily with real-time calculations, so that you don’t have to wait for the month end to understand revenue in the month. 

The system also detects any changes to an invoice. All modifications, as well as credit notes, are processed automatically for an accurate view of revenue every day 

Be prepared for growth

Growth chart

As your company grows, the complexity of billing arrangements can quickly escalate; with different terms by client or contract, different billing periods for hardware, software or specific services.

From this point, critical business metrics can be derived in a single click MRR (monthly recurring revenue), ARR (annual recurring revenue), CAC (cost of customer acquisition), as well as unit economics. 

Be prepared for growth

As your company grows, the complexity of billing arrangements can quickly escalate; with different terms by client or contract, different billing periods for hardware, software or specific services.

From this point, critical business metrics can be derived in a single click MRR (monthly recurring revenue), ARR (annual recurring revenue), CAC (cost of customer acquisition), as well as unit economics.

Growth chart

Benefits

Save time and improve accuracy with our automated deferred income calculations.

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Streamline process

Streamline your accounting process and close the month faster.

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Improve transparency

Improve transparency, traceability. Ensure a clear audit trail.

Accurate reports

Consistently deliver deferred revenue reports that are accurate.

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Create a real time view

Gain the ability to provide a real time view of revenue, in 1 click, whenever you need.

Accounting systems

Can I automate deferred revenue with Xero, QuickBooks or Sage?

ScaleXP seamlessly combines data from accounting platforms like Xero, QuickBooks, Sage and many more.

See the full integrations list ->

Switch currencies

Can I calculate deferred income with other currencies?

The system works across currencies and countries.

Invoice details

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.

Close faster and improve revenue recognition accuracy.

Ready to get started? Sign up for our 1 hour onboarding session

Close faster and improve revenue recognition accuracy.  

Ready to get started? Sign up for our 1 hour onboarding session

★ ★ ★ ★ ★ 

‘outstanding and truly astounding’

Deferred revenue FAQs

Deferred revenue or deferred income, which can also be referred to as unearned revenue, is revenue which has been invoiced but not yet ‘earned’. It is an advanced payment for services to be delivered in the future.

Deferred revenue typically occurs when a company issues an invoice, for services which will be delivered over several months, quarters or years. As a simple example, if you buy a gift voucher and pay today, the company will recognise deferred revenue until that voucher is redeemed. 

Accrued revenue is revenue which has been earned but not yet invoiced. It occurs when invoices are sent at the end of the quarter for services which they have already delivered.

For many small businesses and start-ups, revenue reporting rules may seem daunting. Fortunately, technological advances have streamlined revenue reporting by automating manual processes and enhancing financial visibility, allowing you to get the best view of when revenue should be recognised and when the cash will arrive.

Read more ->

It’s time-consuming and costly to manually calculate and allocate revenue over annual or even quarterly contracts.  Research suggests UK Small and Medium Businesses (SMBs) could save thousands per year by using automated tools. 

Read more ->

Accurate revenue recognition for accrued and deferred income is essential for performance analysis and forecasting, but many organisations still rely on spreadsheets and other inefficient manual processes for deferred and accrued revenue recognition. ScaleXP offers a cost effective alternative.

Read more ->

Deferred revenue FAQs

Deferred revenue or deferred income, which can also be referred to as unearned revenue, is revenue which has been invoiced but not yet ‘earned’. It is an advanced payment for services to be delivered in the future.

Deferred revenue typically occurs when a company issues an invoice, for services which will be delivered over several months, quarters or years. As a simple example, if you buy a gift voucher and pay today, the company will recognise deferred revenue until that voucher is redeemed. 

Accrued revenue is revenue which has been earned but not yet invoiced. It occurs when invoices are sent at the end of the quarter for services which they have already delivered.

For many small businesses and start-ups, revenue reporting rules may seem daunting. Fortunately, technological advances have streamlined revenue reporting by automating manual processes and enhancing financial visibility, allowing you to get the best view of when revenue should be recognised and when the cash will arrive.

Read more ->

It’s time-consuming and costly to manually calculate and allocate revenue over annual or even quarterly contracts.  Research suggests UK Small and Medium Businesses (SMBs) could save thousands per year by using automated tools. 

Read more ->

Accurate revenue recognition for accrued and deferred income is essential for performance analysis and forecasting, but many organisations still rely on spreadsheets and other inefficient manual processes for deferred and accrued revenue recognition. ScaleXP offers a cost effective alternative.

Read more ->