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What are the cloud based solutions for revenue recognition compliance, I know that NetSuite offers one, are there others?

Answers

Ranga Bodla
Title: Industry Marketing
Company: NetSuite
(Industry Marketing, NetSuite) |

Staying on top of revenue recognition is a major challenge and it only seems to be getting more complex. What we see is that the continued change in licensing and distribution models coupled with the ever-changing regulations means trying to manage revenue recognition is getting more sophisticated.

What we've found is that too often, companies look to an add-on to their existing on-premise ERP systems to handle revenue recognition and for many of these systems like SAP, Oracle and Microsoft Dynamics GP is that they arent up to the challenge of the constant changes required. This means finance teams often resort to complex spreadsheets that sap finance productivity, limit visibility and introduce significant risk of error and non-compliance.

In thinking about cloud systems for revenue recognition, there are a few things that one should look for:
Provide complete support for all key revenue recognition standards
Automated revenue calculation
Real-time visibility and reporting
Having all of this will result in greater ease of use and flexibility, better data integrity, more visibility and lower ongoing maintenance.

An effective revenue recognition software system requires a combination of software and processes, as well as the flexibility to adapt to changing conditions. Cloud software can provide the needed foundation, as well as anytime, anywhere, role-based access for key finance stakeholders. Proper revenue recognition touches every part of the process, starting from sales order management all the way to revenue forecasting. In evaluating any system for revenue recognition - you should make sure that it incorporates traceability, centralization, efficiency and visibility to surround revenue recognition. As you state, NetSuite provides a complete solution for this. If you are looking at others, make sure they incorporate and can handle all of those elements.

Topic Expert
Bob Scarborough
Title: CEO
Company: Tensoft, Inc.
(CEO, Tensoft, Inc.) |

Tensoft offers cloud-based revenue recognition alternatives that you may wish to consider. And, Tensoft’s applications are a best-of-breed approach – a revenue recognition solution that’s independent of the ERP system you are using.

To the previously provided list (provide complete support for all key revenue recognition standards; automated revenue calculation; and, real-time visibility and reporting), I would add that you should look for a solution that is:
1) Integrated with the appropriate transaction model for your go-to-market model;
2) Auditable and traceable.

Companies use a variety of business models when going to market, based on their products and their target markets. The solution that you choose needs to handle the way that you go to market in order to appropriately capture the transactions that feed into your revenue management solution.

Jordan Krizman
Title: Marketing Manager
Company: ProfitKeeper
(Marketing Manager , ProfitKeeper) |

If you have already checked out NetSuite, you could take a look at Intacct and Workday.
I know they have a revenue recognition feature, but I cannot vouch for it one way or another.

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