Find out how Sage Intacct simplifies subscription billing.
Are you using spreadsheets and manual reconciliations to manage complex revenue recognition which is ultimately impacting your time to bill? IFRS 15 revenue management guidelines require companies to identify performance obligations in existing contracts, reallocate revenues each time a customer contract changes, and defer expense recognition to align with the contract’s delivery. Sage Intacct provides contract automation which streamlines subscription accounting while keeping the business compliant with regulations.
In Sage Intacct you can set the terms of your contract by entering the following data:
- Term type: choose from evergreen or a specific term.
- Billing frequency: select monthly, quarterly or annually.
- Payment terms: you can set up for “pay in advance” or your specific payment terms.
- Currency: select different currencies, use a base currency or a transaction currency, and Sage Intacct will pull in the daily exchange rate from the Oanda currency converter.
- Renewal: set up a template, for example, specify that the contract renews after 60 days with a 5% increase.
- Create a compliance checklist: APIs enable you to pull in data from any external systems, to populate specific fields required for compliance. Smart rules can be set up so that once compliance is met, the contract is automatically created.
- Setup usage parameters: these will generate internal and customer notifications on usage, for example, support hours used.
- Attachments: useful documents may be attached to the contract, for example, credit checks.
- Dimensions: specify the dimensions you would like to measure for reporting.
- Journal tab: look at each line on a contract and see exactly which journal it is being written to.
Key Benefits of Revenue Recognition in Sage Intacct
Discover why Sage Intacct’s contracts module is a favorite among online reviewers at G2. With its user-friendly template system, generating various types of new contracts has never been easier. But that’s not all. Here are some more standout advantages of using Sage Intacct for contract management.
Sage Intacct’s recurring-revenue management and revenue recognition solution supports subscription billing and contract-based billing. It enables flexible automation of your renewals, upgrades, on-hold, resume and cancellations of contracts.
Automate revenue recognition according to accounting standards.
Simply integrated finance and CRM systems. Integrated systems provide visibility of billing information and the customer journey for Sales and Finance. Employees can access real-time updates on discounts, usage, renewals, upgrades and other changes.
Dashboards & Reports. Sage Intacct shows you every stage of the revenue lifecycle so you’re ready with quick answers for customers and colleagues. Quickly see order details, fulfillment of performance obligations, revenue recognition, billing, and collection details. View revenue from multiple dimensions—by contract, products, divisions, and more.
When managing contracts in Sage Intacct, you’re able to forecast future revenues and gain deep insights that guide your business decisions on hiring, acquiring, and investing in products.
Unlike other solutions, Sage Intacct offers a contract onboarding utility that automatically builds your accounting baseline for historical and in-flight contracts, providing retrospective reporting at go-live in roughly half the time of a manual implementation. Innovation like this helps Sage Intacct maintain their #1 position in Subscription Revenue Management on the G2 review site.
Sage Intacct Revenue Recognition, also called Revenue Management, is a module that helps you to automate revenue and expense reallocation. Sage Intacct natively supports the new accounting standards implemented in 2018/19 , thus reducing the burden on your finance staff. With Sage Intacct you can gain deep insights into revenue value and profitability by contract, products, divisions, and more. By integrating with Salesforce you achieve a seamless, bi-directional flow of order, customer, and contract data.
When everything you need to forecast is in one place and derived from the contract master and schedules you define, you can cut your close by 30% to 50% and get automated revenue forecasts. Automating a single revenue stream across the customer lifecycle saves hours each month on calculations and reconciliations.