In the software industry, revenue recognition and renewals are two aspects of a business that require plenty of attention. Revenue must be recognized in a manner to ensure compliancy. Renewals have a very high value and are essential to a company’s success. With the proper tools for your software company’s finances and renewals, NetSuite provides a solution to make your life easier.
Advanced Financials with Revenue Management and Revenue Recognition
Financial management is complex in any industry, but arguably the software industry has some of the most complex financials around. For most software companies one of the biggest stumbling blocks is managing revenue recognition and billing schedules—all while ensuring compliance. Few financial packages provide all of these tools together, forcing companies to resort to spreadsheets or third-party standalone packages. NetSuite gives you one financial system that manages accounting, complex billing and revenue recognition—so there’s no more double entry.
NetSuite’s financial management software solution is used by thousands of organizations to manage their accounting needs. It accelerates financial close, provides strong expense management and offers streamlined and auditable revenue recognition management, with support for the latest standards. NetSuite accounting includes full general ledger, accounts payable and receivable, multiple budgets, multi-currency, online bill pay, allocations and multi- company consolidations, all with real-time reporting.
Renewal revenue is a critical source of revenue for most software companies and managing and optimizing these revenue streams is critical to their long-term health and success. Yet many companies suffer revenue leakage and customer churn because they rely on cumbersome and inefficient manual processes to manage renewals and account for recurring revenue. The many spreadsheets and organizational handoffs involved introduce costly errors and delays, obscure visibility into the pipeline and rob companies of the opportunity to capitalize on the full potential of contract-based business. In many cases, software companies leave money on the table because they cannot respond quickly enough to expiring customer relationships.
NetSuite provides the critical end-to-end functionality that software companies require to manage their renewal business. NetSuite uses a single repository for customer management, facilitating the tracking and renewal of contracts, including subscription licenses as well as maintenance and support. Additionally, NetSuite allows you to automate renewals through a flexible and powerful process to track renewable assets and maximize revenue. Software companies can reduce costs through better billing efficiencies and gain real-time visibility into the installed base, pipeline and status of renewal revenue, upsells and returns.
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