Subscription-based businesses need to handle real-time changes based on customer demands throughout the subscription lifecycle.
Revenue recognition is an example of one complex process for subscription companies, where usage, billing, and revenue by default occur on different schedules. Improperly managed accounting rules can become a risk to the business, and the revenue recognition rule, ASC 606, has made it even more challenging.
What makes it all the more complex is the number of different scenarios, each requiring a different way of recognizing revenue. Each facet of billing adds another layer of complexity.
Billing models could vary from a simple plan-based approach to a quantity-based or metered approach. The frequency of billing can vary among monthly, quarterly, or annual. Throw in upgrades, downgrades, cancellations, discounts, and one-time add-ons, and you get the picture.
The implications of getting rev rec right are two-fold. Being compliant and ensuring you have an accurate picture of your financial health is one. The other and the probably more hard-hitting implication is on the business’ valuation and investor-interest.
While Chargebee handles all of the billing-related tasks, revenue recognition was one area where we realized where we could add more value to our users.To that end, today, we announce our partnership with RevLock, a leading revenue recognition solution. Chargebee + RevLock will be an integrated solution to meet the demands of automating ASC 606 and IFRS 15 compliance.
“We are committed to our customers to automate the full range of billing activities that reduce time and expense associated with this work, improve quality and consistency, reduce errors and enhance reporting for better decision making. The addition of RevLock’s platform to our offering is a natural extension as so many companies are wrestling with how to build processes to meet these objectives when it comes to ASC 606 compliance,” said Omar Nawaz, Chief Product Officer Chargebee. “RevLock enables us to deliver the value our customers can depend on.”
“We are proud to partner with Chargebee. We share their vision for automating financial activity to help businesses reduce the time and errors associated with performing the work manually,” stated Craig Kirsch, CEO, and Co-Founder at RevLock. “RevLock rounds out Chargebee’s offering in a robust and valuable way for its subscription-based clients.”
Combining RevLock and Chargebee is a best-in-class solution, allowing businesses to choose from various templates and recognition methods that suit their business.
Request a demo to learn how your business can benefit from Chargebee + RevLock.