New integrated module tracks revenue from order to recognition for enhanced reporting and ASC-606 compliance
SaaS companies can sign a deal, send an invoice, even receive funds. But they can’t book the revenue — or “recognize” it, in accounting lingo — until they’ve delivered the service. With SaaS, the bookkeeping gets tricky.
But not with Subskribe. Today Subskribe launched a new Revenue Recognition module for its Adaptive Quoting and Billing Platform, enabling SaaS companies to tightly integrate all three functions — quoting, billing and revenue recognition — for fast, compliant operations.
Subskribe’s Revenue Recognition module tracks the complex details of SaaS deals, including line items such as onboarding training, user support and professional services, so there’s never any doubt whether these services have been fully delivered or are still owed to the customer.
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“Even if a SaaS company signs an annual contract and gets paid up front on day one, it’s not allowed to recognize that revenue on its books,” said Durga Pandey, CEO and cofounder of Subskribe. “Many SaaS companies use specialized revenue recognition software to track performance obligations from quote to cash. But that adds complexity, cost and overhead. It’s far more effective to bake revenue recognition into the quoting and billing system, so revenue flows are easy to manage. That’s now possible with Subskribe.”
Revenue Recognition from Subskribe uses the same innovative order-based data schema as its Quoting and Billing modules. This means a sale can be quoted, accepted, invoiced and then recognized all within the Subskribe platform. This integrated approach increases visibility, eliminates costly data transformations or reentry and streamlines compliance.
“There is a lot of scrutiny on public-market SaaS companies at present to accurately report revenues. They need a framework that can be relied on to track revenue throughout the lifecycle of a contract,” Pandey said. “Turns out that’s far harder than imagined when there are dedicated quote systems in sales, a different billing system, another general ledger platform and a revenue recognition system, plus a healthy amount of Excel for good measure. With Subskribe, the entire process can be managed on one platform.”
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Subskribe Revenue Recognition provides the following features:
- Auditing of revenue back to the line item order on a specific contract
- Accurate tracking of performance obligations remaining on a contract per order line
- Ability to reallocate revenues to offset discounted or complimentary services or products
- Shared account name and product name conventions across quoting and billing
- Integration with common GL accounting software, ERP and project management tools
- Processing of complex allocations and contract modifications based on SSP.
“Under ASC-606, revenue recognition is a major priority for fast-growing software companies like UiPath — and a real challenge, both operationally and from a SOX control perspective. We need to understand revenue, cost and margin perspective down to the product and customer level,” said Mihai Faur, SVP Finance, Global Controller at UiPath. “Subskribe tightly integrates revenue recognition with quoting and billing, reducing complexity while adding transparency. This is a new and disruptive tool in the market that will help streamline quoting, billing and revenue recognition processes and operations. You don’t need to be an accountant to see the value in that.”
As a single platform that encompasses quoting, billing and revenue recognition, Subskribe can enable revenue teams to more dynamically and efficiently determine a company’s Standalone Selling Price, or SSP. The platform’s configurable discounting engine at the quoting stage allows for flexible reporting on discount segments at the product and account levels, facilitating what is often a complex and onerous SSP calculation process.