Effective revenue management is key to business success. By predicting consumer behavior and optimizing product and service availability, businesses can better maximize their profits. However, revenue management can also be challenging. Manual data analysis can be time-consuming, and inaccurate forecasting and budgeting can affect revenue in the long term. Fortunately, the magazine Hotel Management reveals that technology can help reduce errors and streamline revenue management processes for improved bottom lines.
Among the new digital tools being developed for this purpose, SOFTRAX stands out for its comprehensive solutions. SOFTRAX’s revenue management software helps businesses achieve continuous accounting by combining billing and revenue recognition capabilities. In doing so, it helps businesses migrate away from manual processes and using spreadsheets that can’t keep up with the complexity of revenue management. Instead, it offers seamless integration with major ERP, CRM, and CPQ systems for efficient and more accurate long-term results.
Here’s more on the features that allow SOFTRAX to amplify revenue management capabilities:
ASC 606 and IFRS 15 compliance
Compliance with accounting standards is a must for businesses. ASC 606 ensures that revenue is only realized when contractual obligations between a business and another party are met. Meanwhile, IFRS 15 seeks to create a single source of guidance that companies must follow when reporting their income based on customer contracts.
In the past, businesses had to follow a five-step model, which included identifying the obligations in their contract with a customer, determining and allocating the transaction price, and recognizing revenue only when it satisfies the contract obligations. SOFTRAX simplifies these tedious and time-consuming processes for improved ASC 606 and IFRS 15 compliance. The software provides a single-system approach to manage revenue recognition, allowing transparency and compliance with these standards. It can help businesses determine and maintain Stand-alone Selling Prices, for example, which used to be done manually. With this, businesses of all sizes, ranging from SMEs to major companies like 3M, can more easily guarantee compliance with revenue recognition standards.
Complex billing models
More businesses are implementing complex pricing models as they’re generally flexible and offer more opportunities to profit than simpler pricing strategies. CEOWORLD Magazine also notes increased consumer demand for these convenient and affordable subscriptions, with packages offered by brands like Amazon and Sam’s Club offering customers different membership tiers and various ways to pay for them. However, such models can make revenue management more complex since businesses must consider the cost of production, demand, and competition. They also need to account for multiple pricing models on a single invoice. As such, they can be more challenging to compute for and predict.
That’s where SOFTRAX comes in with its advanced billing integration feature. This can address challenges like incorporating minimums, tiering, and overages. Moreover, it provides specific solutions for different types of billing that can capture all revenue stages and condense them into a single invoice for easier management. Software company Epicor has used SOFTRAX to manage recurring billing since 2012, helping grow and scale their operations.
Renewing contracts allows businesses to extend their commercial relationships and revisit payment terms. A LinkedIn article on contract renewals shares how this can be challenging, as businesses have to track renewal dates per contract and may lack contract management expertise, such as legal support. Failure to renew contracts impacts a business’s revenue, but SOFTRAX can help avoid this.
One of the software’s capabilities is contract renewal management. This reminds businesses of upcoming contract renewal dates. They can also track a contract’s status at every step of the renewal process so they can follow up with the concerned parties to make agreements and successfully re-sign the contract. In fact, it has helped Park Place Technologies process their contracts in full automation, saving resources and benefiting revenue.
SOFTRAX is an all-in-one revenue management software that helps businesses grow their finances. With its multitude of capabilities, it can be of great help to different kinds of companies.
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