Spreadsheets vs ERP: Are you up to your neck in Rev Rec spreadsheets?
Cloud ERP and cloud financial software enables better cross organizational management of data and processes, so why are companies still married to spreadsheets? With the new Revenue Recognition standards (ASC 606 & IFRS 15) approaching fast – January 1, 2018 for public companies and a year after that for private companies – many businesses need to assess the need for new systems.
This is especially true when standalone spreadsheets no longer meet internal control requirements, data volumes and audit needs. And even more true if your company has multiple revenue streams (e.g., product, services, subscription contracts, warranties, etc.)
Top 4 reasons you’re outgrowing spreadsheets for Revenue Recognition:
1) Your billing process gets tangled in spreadsheets and manual processes, increasing the frequency of delays and errors – creating a sluggish opp-to-cash cycle.
2) Your revenue data lives in multiple source spreadsheets that must be reconciled manually, increasing compliance risk and resulting in a costly and time-consuming audit process
3) You’re “maintaining” monster spreadsheets, and with more customers, projects and contracts coming in, data integrity becomes questionable using excel
4) You encounter limitations and difficulties reporting through excel making it impossible for you to have a true picture of revenue
When you switch to an integrated cloud platform for recognizing revenue, the relationship between orders, contracts and revenue are carefully linked in one system. For example, if your company offers services, milestone delivery on a project could trigger recognition on a subscription. You’re able to manage any recognition method; percentage complete, deliverable, ratably over time.
By upgrading to a cloud revenue recognition system, you have total control, and are able to stay compliant effortlessly.
So what are you waiting for? Forget spreadsheets and switch to an integrated Revenue Recognition solution. Check out the Vital Analysis guide to transitioning to the new Rev Rec standards.