Intacct Release 2: Intacct’s Contract and Revenue Management Module
Intacct’s Contract and Revenue Management Module automates and optimizes the financial processes associated with complex contractual relationships. It frees you from managing revenue with dedicated staff and complicated spreadsheets, which lead to inevitable errors, lost revenue and compliance risks.
What are the new ASC 606 and IFRS 15 accounting requirements going to do for your company? If you’re like many businesses, especially those who use contracts that cover services over a period of time or subscriptions for users, they’re going to add a lot of work to your accounting staff’s plates.
If you don’t want to add staff time, more spreadsheets, and the risk of doing something that won’t actually comply with the new regulations, you’ll want to investigate Intacct’s Contract and Revenue Management module, the only automated solution that can divvy up contract revenue and expenses over time, including into closed periods (yes, the new rules will force you to do that if a contract changes). Here’s more about the functionality that the Contract and Revenue Management module offers:
1. Manage Complex Contracts
From one place, you can review contracts, even those with a lot of complicated elements. You can allocate your revenue and expenses over the life of the contract, even if there are changes like add-ons, upgrades or discounts.
2. Handle Revenue Management
With the types of contracts and subscriptions your company provides, you need a way to properly recognize revenue when it comes in. This can be challenging if your sales model is subscription based or dependent on how much of your service a user utilizes in a given period. You can track the revenue across multiple product lines and sort by date, event or percent completed.
For service contracts, you can make easy changes to when revenue is reported even if your project changes, such as if it finishes early or is delayed.
3. Track Renewal Revenue
If you do offer a subscription model for your contracts, you’ll want to have an easy way to report and track renewal revenue. See what contracts are up for renewal and where each one is in the process.
If you have a wide range of pricing options, you can also track that easily. And pre-negotiated or one-off discounts can be accounting for properly, too.
4. Automated Billing
With the new regulations, knowing when and how to bill your customers can be more of a challenge. Intacct’s Contract and Revenue Management module will help you schedule and optimize your billing so it makes the most sense for your records and for your client’s understanding.
5. Forecast Revenue
You need a solid method for forecasting deferred, recognized and renewal revenue under the new rules. With the Contract and Revenue Management tool, you can create reports that reflect the old rules, so it’s easier to compare your financial data to past performance and reports that adhere to the new rules so you’re audit-ready at any time.
6. Comply with New and Existing Rules
In addition to ASC 606 and IFRS 15, you may need to be able to adhere to Sec, FASB and Sarbanes-Oxley rules for revenue recognition — including VSOE. You don’t have to lose sleep wondering if you are in compliance, as Intacct ensures you’re tracking your revenue and expenses the right way.
The best news is that this functionality is all out of the box and easy to set up for your needs, so you won’t have to rely on your IT department to get the ball rolling for you. You can easily see the impact of the ASC 606 and IFRS 15 rule changes on your company’s bottom line.
Contact us today for a demo and more information about how Intacct Cloud ERP and the Contract and Revenue Management Module can work for you.