Revenue recognition is a critical task for finance teams in software companies, especially those operating on subscription-based models.
The intricacies of ASC 606 and IFRS 15 compliance add layers of complexity, requiring companies to account for performance obligations, variable consideration, and multi-element arrangements.
For many, the manual methods they rely on—like spreadsheets—fall short.
Not only do these outdated approaches risk errors, but they also demand excessive time and effort, leaving teams struggling to keep up with compliance requirements and audits.
This complexity often leads to inaccurate reporting, delayed decision-making, and increased audit scrutiny, which can impact investor confidence and regulatory standing.
Deferred revenue management poses additional challenges.
Software companies frequently handle upfront payments for services delivered over time, requiring precise tracking and allocation.
Without automation, managing these schedules can be a logistical nightmare, further exposing businesses to risks of errors and inefficiencies.
Why Automation is the Answer
Automation is no longer a luxury—it’s a necessity.
Manual processes can’t keep up with the precision, speed, and compliance requirements demanded by modern SaaS businesses.
Automating revenue recognition and deferred revenue management simplifies operations, improves accuracy, and ensures compliance with accounting standards.
How NetSuite from FinanSys Solves These Challenges
NetSuite Revenue Management streamlines revenue recognition by replacing manual spreadsheets and repetitive data entry with automated processes.
It allows users to define unique recognition rules for each product or service and associate them directly with individual line items in customer contracts.
Revenue is automatically recognised according to assigned schedules or milestones, ensuring consistent application of the revenue recognition principles mandated by ASC 606 and IFRS 15.
With these tasks automated, accounting teams can shift their focus to higher-value initiatives.
Additionally, the integration of revenue management with NetSuite’s financial tools simplifies and accelerates the monthly close process.
The FinanSys Advantage
When you partner with FinanSys, you’re not just getting NetSuite—you’re getting expertise tailored to your software company.
With 25+ years of accounting software and ERP experience, we bring a customer-first approach to implementation, configuration, training, and ongoing support.
We customise NetSuite’s implementation to suit your specific subscription models, ensuring compliance is built into your processes from the start.
Our in-depth knowledge of SaaS businesses guarantees a faster, smoother setup that delivers benefits that go beyond the software.
FinanSys ensures that NetSuite is configured to match the nuances of your business. Whether you’re working with annual subscriptions, multi-tier pricing, or customised billing cycles, we help you build a solution that keeps your revenue schedules aligned with your financial reporting needs.
Transform Your Finance Operations
Automating revenue recognition and deferred revenue management with NetSuite and FinanSys allows your finance team to focus on strategy, not repetitive tasks.
With our expert guidance, you’ll achieve accurate reporting, compliance, and a system that grows with your business.
Ready to see the difference? Book a free consultation call today.
