In most businesses – whether they offer products, services or both – revenue recognition is a key challenge because one needs to keep track of the constantly changing rules of licensing, contracting and distribution. Moreover, strict SEC regulations and standards of revenue recognition have to be met.
In order to efficiently tackle these regulatory challenges, your business needs a cloud-based ERP solution that provides advanced revenue recognition capabilities. The notion behind NetSuite’s revenue recognition software is to provide a fully integrated solution for reporting and revenue calculation; this simple idea leads to higher data integrity, flexible and easy-to-use systems, lower maintenance and greater visibility.The following four features of NetSuite’s revenue recognition solution help this software to stand out from other on-premise ERP systems:
- Traceability:The process of revenue recognition is a series of steps from sales order to invoicing, including journal entries, and more. Ideally, every one of these steps should be clearly traceable, so that it is possible to introduce changes or details in any of the individual steps. Traceability confers flexibility in the process.
- Centralization: Having a centralized transaction history is critical to efficient revenue recognition. A completely centralized transaction history will enable modifications in reporting processes, and help in adapting to any changes in regulations.
- Efficiency: One of the biggest issues with most revenue recognitions systems is that they need frequent linkbacks between multiple systems. An integrated system such as NetSuite’s takes care of this problem by merging all the data in one system, thereby increasing effectiveness and productivity.
- Visibility:With most ERP systems, real-time information is not available. A cloud-based revenue recognition system can provide quick, efficient data in real time, enabling competent analysis and forecasting. This will, in turn, facilitate proper compliance with ever-changing regulations and policies.
NetSuite's revenue recognition management solution assists enterprises to achieve compliance with accounting standards FASB, SEC and AICPA regulations including SOP 97-2, SOP 98-9, SOP 81-1, ASC 605-25 (EITF 08-01) and ASC 605-10-S99L (SAB 101 and 104).Its automated upgrades ensures continual support through any rule changes and enables timely and accurate reporting of their financial results.
NetSuite presents an integrated approach which gives flexibility to change certain aspects/steps of your business’ revenue recognition process. The cloud-based system can easily and completely integrate with your company’s financials, leading you to a modern, productive system away from spreadsheets.
To know more about NetSuite’s amazing revenue recognition software, or any other groundbreaking NetSuite product, check out our website www.sixred.com today.