Tom Zauli, Senior Vice President and General Manager
Revenue recognition under GAAP has gone through a monumental shift from the past few years, resulting in significant back-office disruption. ASC 606, an updated accounting standard jointly issued by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB), outlines a single comprehensive model for organizations to use in accounting for revenue from contracts with customers. Organizations have been pushed to plan carefully in order to meet the new compliance standards, which are in many cases more complex. Additionally, the migration of companies toward the employment of the Internet of Things (IoT) billing (to add the predictable, recurring revenue streams of a subscription-based service instead of more traditional one-off transactions) is changing how revenue recognition is perceived in the accounting space.
Senior Vice President and General Manager Tom Zauli of SOFTRAX notes the confluence of the new guidance and IoT billing, and the increasing complexity these events create for revenue recognition processes in the back-office and beyond. A modern revenue management system needs to be well integrated with all aspects of the businesses in order to capitalize on the IoT and also be compliant with the new regulations. This is where SOFTRAX steps in and simplifies the complex revenue recognition processes for companies. “We were founded to help organizations in automating their revenue recognition process, all through a reliable and streamlined software,” says Zauli.
SOFTRAX is driven by the mission to change the way companies manage, analyze, report, and forecast their revenue. It offers ASC 606 and IFRS 15 compliant automated billing and revenue recognition software solutions for innovative and high-growth enterprises. Over the years, SOFTRAX has developed and productized its solutions that can integrate with more than 200 ERPs and financial systems, providing a robust revenue management solution. After integrating with the client’s ERP, the solution can automatically receive and calculate sales order or contract, fulfillment, and billing data and act as a ‘revenue recognition hub’ to streamline, control, and automate the revenue recognition processing flow.
One Accounting Solution Does It All
SOFTRAX is a cut above the rest thanks to their flexible multi-tenant cloud solution.
SOFTRAX is a cut above the rest thanks to their flexible multi-tenant cloud solution
A powerful revenue sub-ledger handles the transactions as they come and automatically streamlines each aspect of the revenue recognition process, which, in turn, improves efficiency and accuracy of revenue reports, reduces operating expenses, and provides unprecedented visibility into business performance. This automated functionality eliminates a client’s need for manual work in spreadsheets or writing custom code. Additionally, SOFTRAX offers robust billing functionality and ensures that the client’s billing activity is always synchronized with the latest regulatory changes and amendments. The solution automatically generates billing schedules and manages transactions over a customer lifecycle. Furthermore, SOFTRAX offers sophisticated price books and a calculator to evaluate standalone selling price (SSP), and goes on to automateany subsequent post-processing event such as contract modifications, contract combinations, and revaluation of variable consideration. SOFTRAX solutions have easily customizable dashboards and graphical reports, which ensures that the revenue data is always at their client’s fingertips.
In order to ensure strong security and controls, revenue recognition policy is configured during the solution’s implementation, and an audit trail exists in the solution for any manual intervention with the application outside of the policy. Not only this, the UI enables the users to perform sophisticated searches to spot check given contracts or find an order or a particular customer. Thus, SOFTRAX provides a 360-degree view of the state of the transaction or a contract, making it unique in the revenue management space.
For almost two decades, numerous companies have relied on SOFTRAX’s revenue management software to optimize their revenue, reduce operating expenses, and comply with revenue recognition regulations. To further elucidate the company’s solutions, Zauli shares a client success story. A Dallas-based client had a requirement to process thousands of transactions a day. The multibillion-dollar company was struggling with ASC 605, but the challenges got more complex with ASC 606. After implementing SOFTRAX’s end-to-end solutions, the client effortlessly processes approximately 300,000 transactions a day, including some of the more complex processing of ASC 606 allocations and contract modifications.
Such success stories are a testament to SOFTRAX’s remarkable solutions in the revenue management space. Even though the market is impacted by the ongoing COVID-19 pandemic, SOFTRAX’s solutions are unscathed due to its robustness to handle the complexity of the ASC 606. Undoubtedly, such a robust approach keeps SOFTRAX ahead of the competition. Nevertheless, the company is dedicated to improving its offerings by working with both clients and partners. SOFTRAX is presently working on more products related to revenue recognition. Moving ahead with this undeterred momentum, SOFTRAX will surely continue to set itself apart.