A Great Variety Of Customers Can Benefit From Revenue Management Software

Many technology companies have unique needs that impact revenue recognition

, which in turn impacts profitability, internal visibility and compliance. The revenue cycle can be further complicated by issues such as convoluted revenue recognition rules, complex billing, contract renewal variances and regulatory compliance restrictions.

Revenue management software, such as Tensoft Revenue Cycle Management (RCM) can have significant impact on day-to-day business operations by streamlining business processes, providing efficient time-to-revenue recognition, and detailing fully auditable and traceable processes, for instance.

Although the companies that use Tensoft RCM vary widely, its interesting to note what these firms have in common. Initially, a typical RCM customer has complex billing needs, such as the need for recurring billings or usage-based measured billings, as well as the need to manage deferred revenue and revenue recognition policies. They are often overwhelmed and are looking for a reliable, automated way to overcome their problems. Most often, a typical, new customer will have thousands of records of billings transactions and deferred revenue balances in an Excel spreadsheet that must be updated manually on a monthly basis. Often, more than one user or department is updating the spreadsheet, in addition to the finance department. Manually managing large volumes of business-critical data in Excel is notoriously prone to error, so these companies are in need of a system, like Tensoft RCM, that offers a repeatable and consistent process for managing their revenue in a reliable manner.

A typical issue is recurring billing for maintenance contracts. This is quite a common issue and one that is a high pain point for many companies. Most companies have annual billing and deferred revenue recognition rules for maintenance. They need to set up these billings in advance, so that in twelve months, they'll be able to go back and remember to bill their customers. Tensoft RCM revenue management software takes care of this by allowing the user to define a recurring payment schedule to streamline the billing processes. The software also allows users to put email reminders in place before the maintenance renewal is due. This way, a document can be attached to the contract so the details of the contract are always close at hand.

Companies that have implemented Tensoft RCM are not only making use of the features provided in RCM, they are also creatively adapting them to their business processes and business needs. Many are saving time by streamlining inefficiencies and eliminating manual data entry, noticing a tangible increase in productivity. With RCM, there is a common data set for tracking contract details which increases data visibility while allowing for better and more accurate reporting. These streamlined companies place tremendous emphasis on their newly improved ability to see forecasts whether a recurring billing forecast for a customer or a forecast of revenue recognition by fiscal period. This improvement also extends to their end-customers in terms of allowing them to better-understand their billings, forecasted billings and forecasted revenue. One of the primary benefits of relying on a system, like Tensoft RCM for revenue and deferral management is compliance. RCM helps its customer companies by applying rules consistently and tracking changes to transactions by user login. This is impossible if revenue is being managed in a spreadsheet, since a spreadsheet is only as accurate as the last user's edits.

by: Alan Thurner

POST COMMENT

Digital Publication The Need Of The Hour Effective And Efficient Customer Service With Sage Accpac Crm Better Business Decisions With Sage Accpac Insight Enhancing Customer Relationships To Promote Client Loyalty Crm, Plm, Customer Relationship Management Crm Software, Plm Software, Crm Solutions, Plm Solutions Outsourcing Development With Indian Companies Means Absolute Peace Of Mind What You Can Expect From Microsoft Business Solutions Great Plains Why Microsoft Crm Software Is Needed In Every Business Organization 5 Highly Recommended Microsoft Dynamics Business Applications Adaptable Business Management Solutions , Same Familiar Interface Wordpress How To Microsoft Frx & Forecaster - Financial Information On Your Fingertips Make Your Pc A Complete Entertainment Center With The Ati X850 Driver