Revenue Recognition Insights

The installment sale method links revenue recognition to the period you receive payment. It requires the buyer to make separate payments during each accounting period of an extended contract. These installment obligations split revenue across multiple years to limit taxation and simplify bookkeeping procedures.

In a recent fireside chat at Dreamforce’s Revenue Cloud Lounge, Jagan Reddy, CEO and founder of Right Rev, shared his deep insights on this subject, drawing from over 15 years of experience in implementing ERP systems across various industries including finance, manufacturing, and human resources. His perspective sheds light on the inherent limitations of traditional ERP systems and explores innovative paths toward achieving true business agility and revenue visibility.

Breaking down the various ways accountants handle revenue recognition—each method akin to a different path in our maze. We’ll compare the traditional approaches, weigh their pros and cons, and guide you through why a specialized solution might just be the treasure map you need to navigate the complexities of revenue recognition with ease.

Cost-to-cost is an essential accounting strategy for any performance obligation that may take years (or even decades) to recognize its revenue across multiple accounting periods. 

What is an ERP system’s function in proper revenue recognition? Are all ERP revenue software options able to handle the complexities associated with it? This article will uncover the answers. 

Despite how difficult it can be for modern companies to accurately recognize revenue, proper revenue recognition is still mandatory for GAAP compliance. To that end, let’s unpack GAAP so your organization can avoid the penalties and pitfalls of misreporting. 

In this webinar, leaders from Globant, Salesforce, Continuous, and RightRev will demonstrate how flexible prepaid usage pricing models can fulfill vendors’ needs for upfront revenue commitments while offering customers greater spending flexibility. This approach addresses the challenges of unused subscriptions and shelfware, benefiting both vendors and customers.

In the new landscape of modern business, finance professionals are being called to take on more strategic roles. One critical aspect of this transformation is how finance leaders are adapting to the “quote-to-cash” processes. This term refers to the comprehensive process from generating a quote for a customer to receiving payment and recognizing revenue. Let’s […]

Audit readiness is crucial for revenue accountants and helps ensure that revenue accounting processes are robust, reliable, and compliant, but it isn’t always enjoyable. The stress of making sure every detail is accurate and in compliance adds an extra layer of challenge to their already demanding roles. 

As more businesses transition away from single transaction models to increasingly complex pricing and billing structures, Enterprise Resource Planning (ERP) accounting modules struggle to accurately track complex recurring revenue streams—and, needless to say, they fail to do so in real-time. 

Many organizations have defaulted to using an Enterprise Resource Planning, or ERP, as a single-source-of-truth system to handle multiple business functions. Often praised for being an all-in-one, multi-faceted software, it often means that ERP systems may not go deep in any one area, particularly revenue recognition. Specialized needs are typically not met with the level of detail and accuracy required for precise revenue management.

Explore RightRev’s automated revenue recognition capabilities in a product demo led by our Solutions Consultant. We’ll demonstrate how to configure revenue rules for any revenue model, whether upon bookings, billings, project milestones, percentage of completion, or usage data.