Revenue recognition is a core component of accrual-based accounting. Revenues (and expenses) are recognized at the time when they are considered delivered and not necessarily when cash is received. It sounds simple, but in practice can be challenging to determine what has been committed, how much, and when revenue should be recognized.
As monetization strategies shift from neatly defined, one-time purchases to subtler long-term relationships that are built on a combination of ongoing product and service-based cash flow, financial professionals need to define a distinct and automatable process for generating accurate, clear and thorough financial reports.
Download the full tip sheet to explore five considerations to keep in mind when evaluating software that automates revenue recognition.