How to use revenue recognition software in your business

Adnan Patel
| 8/12/2021
How to use revenue recognition software in your business

Revenue recognition software can help your business grow

What is revenue recognition?

Revenue recognition is a generally accepted accounting principle that determines the conditions for when revenue is recognized and how to account for it. For some types of businesses, this can be fairly straightforward. Revenue is recognized when a customer pays for a product. However, when there are licenses or extended consulting or maintenance services involved, it can become more complex.

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Revenue recognition can be a minefield for compliance issues and ever-updating standards.

It’s important to have a tool that keeps you up to date with your industry's latest standards and principles. NetSuite’s revenue recognition software offers the tools you need to avoid using multiple spreadsheets, which can lead to errors and noncompliance.

Your revenue recognition software should also include the ability to forecast revenue based on business events like project completion, project updates, and planned revenue. Additionally, it is important that your revenue recognition software allows you to recognize multiple types of revenue – for instance, revenue recognized at fixed intervals versus revenue recognized at different intervals. With NetSuite’s revenue recognition software, you can recognize multiple deliverables, percentage-of-completion accounting, event-driven revenue plans, and multicurrency transactions.

Crowe can easily integrate NetSuite’s revenue recognition software with your existing ERP system, allowing you to import orders and invoices for revenue recognition and export journal entries to the general ledger in your ERP.

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With NetSuiteā€™s revenue recognition software, you can grow your company faster

Using revenue recognition software automates your revenue recognition process. No matter your industry and the type of goods and services you provide, having one place to calculate, record, and report your revenue will dramatically save time and support accuracy across multiple revenue streams.

With NetSuite’s revenue recognition software, you also have the ability to use prepackaged templates for standard goods and services or create custom templates for more industry-specific goods and services related to your business. Because NetSuite’s revenue recognition software is a cloud solution, it automatically updates with the newest recognition rules, allowing you more time to grow your business. NetSuite’s revenue recognition software also allows for continuous monitoring; it notifies you when revenue is expected to be recognized so you can see issues or exceptions as they occur and correct them quickly.

Not all revenue recognition software is created equally. It is important that the software you choose automatically updates with changing recognition standards, supports multiple performance obligations, multiple deliverables, fixed and variable recognition timelines, and easily integrates with your existing ERP. The ability to apply set rules to the same types of transactions is also important. Finally, you want the ability to grow your business globally. NetSuite’s revenue recognition software allows for multicurrency and multi-subsidiary transactions to meet global business needs.

Contact us

Adnan Patel
Adnan Patel
Principal, Consulting
Steven Parker
Steven Parker
Managing Director, Consulting
Alejandro Alvarez
Alejandro Alvarez
Senior Manager