Summer 2022 Release: Navigate Economic Headwinds With a Better Revenue Recognition Process

Inflation, volatile markets, and weaker activity are wreaking havoc on today’s economy; the World Bank is reporting that global growth is expected to slump from 5.7 percent in 2021 to 2.9 percent in 2022, hovering around that pace until 2024.

Businesses are starting to shift the conversation from growth and expansion to conserve and protect. During times like these, businesses need to ensure the accuracy of their revenue reporting and add controls to mitigate risks.

Many subscription businesses are seeing a rise in customer behaviors that directly impact revenue recognition via sudden contract modifications such as cancellations, amendments, pricing changes, and more. The ability to efficiently keep up with these changes when compliantly recognizing revenue and accurately reporting financial results is paramount.

If history is any indication, we at least know that auditors and investors are more expectant. According to a survey conducted by Deloitte & Touche in late 2008, 63 percent of the firm’s clients expected an increase in accounting fraud related to the global financial crisis experienced that year.

Chargebee RevRec continuously evolves our product to ensure high-growth businesses can recognize revenue accurately and at maximum efficiency.

Today we’re releasing a new set of product updates built to further streamline your accounting processes. Updates that ensure your compliance and accuracy during a time when everything else in the market feels so uncertain.

Do Business Anywhere and Remain ASC 606 / IFRS 15 Compliant With Multi-Currency

What?

Businesses that conduct operations internationally frequently transact in multiple currencies with customers. Chargebee RevRec instantly converts transactions into a single reporting currency with direct integrations to multiple data sources for exchange rates.

Why?

This update allows customers to easily maneuver exchange rates and avoid time-consuming, manual conversions prone to errors.

How it helps

Customers can easily and accurately transact in any currency with instant conversions while maintaining compliance with ASC 606 / IFRS 15. No matter where you conduct your business, you can understand how currency fluctuations affect cash flow and operating results.

Get ASC 606 Compliant, Automated Expense Recognition

What?

Chargebee RevRec now delivers the same end-to-end, compliant automation for your expenses as it does for your revenues.

Why?

Just like revenue, companies are required to recognize expenses–such as sales commissions, deferred charges, and other contract-related costs over time or as incurred depending on facts and circumstances.

How it helps

This update fully automates expense recognition that’s ASC 606 / IFRS 15 compliant and doesn’t require any manual calculations. Chargebee RevRec allows customers to easily account for contract costs and amortize contract-related expenses the way they want–over an economic life on a transactional or portfolio basis. This data gets pushed directly back to the general ledger via journal entry for accurate and timely financial reporting.

Be More Efficient and Accurate With Chargebee RevRec’s Integrations

What?

The latest integrations ensure that Chargebee RevRec is a flexible solution that can integrate with a customer’s entire tech stack.

Why?

Disparate systems and manual interventions are often the culprits of bad data, improper revenue recognition, and ultimately misstated financial statements. By connecting common data sources, customers can enjoy a seamless flow of critical data–from their front-end / CRM to their back-end accounting system / GRP.

How it helps

By integrating with common data sources, Chargebee RevRec enables seamless processing of critical financial data housed in a revenue subledger that becomes the single source of truth for all revenue transactions. Customers can achieve maximum efficiency and analyze accurate revenue reporting in a single system without manual intervention.

Align Your 4-4-5 Fiscal Calendar With Your Accounting Cycle

What?

Many retail businesses operate with a 4-4-5 fiscal calendar year.

Why?

A solid revenue recognition solution will enable users to align their custom fiscal calendar year to their accounting cycle to ensure compliance and accurate financial reporting.

How it helps

This new update lets customers automatically align their 4-4-5 fiscal calendar with their accounting cycle, enabling accurate reporting and metrics tied back to their revenue sub-ledger.

Chargebee Is Here To Future-Proof Your Business

As many of us try to interpret today’s market turbulence, Chargebee RevRec is here to ensure you’re not stuck interpreting your revenue recognition in growth-crippling spreadsheets or other manually intensive processes.

Learn more about how our revenue recognition solution can unburden your finance team with end-to-end, ASC 606 / IFRS 15 compliant automation below.

Reach out to our product experts for a consultation call today.

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