A reporting solution that scales with your software company growth
Sage Intacct allows software companies to make more informed business decisions with comprehensive software revenue recognition management that provides real-time visibility into business performance. We understand the issues your finance department grapples with every day—from complex, evolving software revenue recognition guidelines and a disconnected quote-to-cash process, to complex subscription billing and renewal management challenges.
Often, accounting departments – and accountants – live true to their nature and perform functions in the least expensive way possible. This is not always the best way to perform, however. Considerable time, effort and momentum can be lost by performing redundant tasks or performing tasks less efficiently. Over time, however, the accounting staff begin to accept their fate as “the way it has to be because of those %&$*#$! VSOE rules!” Seldom does anyone stop to consider what “could be” or what other options exist.
What can our solutions do for your Software or SaaS company?
Take, for example, the case of a software company that develops escrow management software for the realty industry. This company produces a product and has a professional services staff that implements the software product. In recent years, the company has begun to sell the product and the implementation in a fixed-price bundle to be more competitive with other vendors in the same market space. While that simplifies things for sales, it immediately presents issues and more work for the accounting department.
Bundling services and products together in a single purchase introduces an accounting concept called Vendor Specific Objective Evidence, or VSOE for short. VSOE is not an overly complicated method of revenue recognition – IF you have the right software to manage it. If you do not, it can become a nightmare! Really!! You may have vivid, colorful, highly disturbing dreams about it!
Okay, okay, so you won’t have nightmares – probably – but you will spend countless hours updating spreadsheets – multiple spreadsheets – just to keep your revenue amounts correct. Why bother with all of that hassle?