The complexity of revenue management continues to challenge finance professionals. For professional services and subscription-based organizations, contract management is one of the most difficult issues because of the complexity with managing revenue, time-consuming manual processes and evolving industry and government regulations. With Sage Intacct’s Contract Revenue Management tool, organizations can automate revenue reallocation and optimize the difficult processes associated with revenue recognition while meeting ASC 606 compliance standards. Below we will discuss the top 5 ways Sage Intacct can help eliminate complex contract management processes and help gain deeper financial insights into your organization:
1. Successfully Automate Revenue Reallocation
Sage Intacct’s Contract Management tool will automatically and correctly reallocate the revenue for you when creating a contract or updating an active contract by adding, updating or de-booking contract lines. Sage Intacct supports Multiple Element Arrangements to allow revenue recognition regardless of contract line pricing. This reallocation method ensures accuracy and can save your organization hours of time in reporting.
2. Ensure Compliance with New Revenue Recognition Requirements
For subscription-based businesses, regulations can be challenging to consistently and accurately implement with complex contracts and customer agreements. Sage Intacct allocates revenue based on current accounting standards, ensuring revenue recognition processes are running smoothly. Intacct allows unlimited revenue recognition templates for straight-line, daily, milestone, and custom recognition methods for “set it and forget it” automated revenue recognition.
3. Streamline Contract and Subscription Billing Processes
Sage Intacct’s system correctly automates subscription billing, contract billing and recurring billing services, eliminating labor-intensive manual calculations with built-in tiered pricing and usage-based billing. Sage Intacct uses the start and end dates along with billing templates to automate billing cycles and contract renewals. Sage Intacct adapts to your billing model and provides full visibility into your organization.
4. Real-time Visibility with Reporting & Dashboards
According to a Sage Intacct report, organizations have saved 40+ hours per month on reporting and cut time spent checking data accuracy by 75 percent. Sage Intacct Contract Management tool allows your organization to have instant access and complete visibility into your contracts, contract revenue and contract expenses. Sage software allows you to get detailed insights into your contracts and subscriptions with customized dashboards and reports. With the system’s reporting capabilities, you can pull any individual contract and find all the information you need in one place- from billing schedules, invoices, contract details, payments and more.
5. Guarantee ASC 606 Compliance
According to a survey of top finance executives at mid-sized companies in the U.S., Intacct found that only 16 percent of respondents believe their existing core accounting software is currently equipped to handle new requirements brought on by ASC 606. Sage Intacct completely automates all activities to comply with current accounting guidelines, eliminating the time-consuming process of transitioning to new guidelines and guaranteeing complete ASC 606 compliance for your organization. Contract finances flow from Unbilled to Deferred to Accounts Receivable based on pre-assigned GL accounts. Historical ASC 606 contract balances can be calculated to bring “in flight” contracts to full compliance.
Sage Intacct Contract Management software allows your organization to spend more time focusing on core business strategies opposed to hours of manual tasks. Your organization can automate financial processes associated with complex contractual relationships while ensuring compliance with current accounting standards. As your organization continues to grow, Sage Intacct’s flexible infrastructure will adapt to meet your needs.
CompuData is a proud Sage Intacct Partner and has helped our clients implement Sage products across the nation for over 30 years. To learn more about our Sage Intacct expertise and how we can help your professional service organization increase business performance, visit here.