A New Way to Achieve Internal Control of Your Revenue
Efficient Revenue Compliance in Todayâs Regulatory Environment
Achieving accurate, timely and efficient revenue reporting has become a formidable task in todayâs environment of fast-changing business requirements and stringent regulatory oversight. Ever-changing business models in many industries have generated complex accounting rules and processes for determining revenue. As a result, immaculate revenue reporting is now a requirement for enterprise infrastructures and an essential component of any regulatory compliance effort.
Revenue Recognition and ERP: The Missing Link
Despite its significance, revenue manage- ment has slipped through the cracks of the financial infrastructure at nearly every company.
Typically companies use ERP systems to manage their financial processes. However, a survey of 685 executives by www.RevenueRecognition.com and IDC found that 92 percent of companies are using spreadsheets for one or more critical revenue processing activities.
But many revenue managers continue to rely on risky and cumbersome spreadsheets while pondering expensive customized systems. Unfortunately, implementing the companyâs revenue policy this way is unmanageable, unreliable and ultimately, unauditable.
Revenue Management: A New Approach
Revenue reporting, compliance and forecast-ing should be managed in a single system working in concert with an existing ERP, business intelligence and compliance infrastructure. This provides corporate control over how revenue flows through all the revenue-related processes throughout the enterprise, and at the same time helps to achieve critical business benefits:
Manage Risk and Sarbanes-Oxley Compliance With Robust Internal Controls for Revenue Recognition
An automated revenue management infrastructure enables you to easily implement and manage internal controls over revenue processes throughout your business. Meeting Sarbanes-Oxley compliance requirements for revenue rules enforcement, testing and reporting becomes a matter of routine. Your revenue controls are continuously up to date and documented, ensuring executives and auditors that reported revenue is in compliance with all applicable guidelines and regulations.
Optimize Revenue Recognition Processing and Reduce Cost
An automated revenue management system designed to handle the range of revenue transactions required for your business helps automate proper revenue accounting and general ledger entries for standard, high-volume business transactions. At the same time, it supports the oversight and management of complicated, multi-element contracts, in a single system with a centralized repository for clean revenue data. By making revenue-compliant data and internal control documentation readily available, a revenue management system can substantially reduce audit issues and expenses.
Unprecedented End-to-End Visibility
Into Revenue Processes
An automated revenue management system provides visibility into the entire revenue process â from contract/order to final revenue reporting. Analyze your business on all levels, such as business unit, product line or market segment while staying within the appropriate revenue recognition treatments of your revenue policy. Easily perform complex revenue calculations; optimize and automate revenue recognition processes; review and audit revenue recognition decisions; and aggregate the actions of other enterprise systems which impact revenue recognition.
