Codacy is a platform that automates code reviews by automatically applying static analysis code patterns to your project and grading it.

How Codacy Automated Nearly 90% of Their Revenue Recognition Tasks with Chargebee RevRec

Codacy also saved more hours and accelerated its month-end closes with Chargebee RevRec's accurate reporting.

What Codacy looked for

A formal, automated revenue recognition process to go hand-in-hand with their already existing billing system — Chargebee

A way to recognize revenue per the GAAP accounting standards and rules

After Chargebee RevRec

Automated around 90% of revenue recognition tasks

Saved the accounting team at least 12 hours of work per month at the month-end close

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The Problem


Codacy has been a Chargebee customer since 2016. When the team signed up for Chargebee, they needed a billing system that would save them the countless hours it would take to maintain and scale their current in-house solution with Stripe. The system required them to make changes to the code base each time they wanted to make updates to the billing process or fix issues. The codebase got more complex, and the changes ate into development time.


The team needed all their invoicing, reporting, and taxes in one place. And since they had outgrown their in-house solution, they needed a solution that gave the team back the development time they were losing to fix issues in their codebase. After a rigorous selection process, Chargebee was selected as Codacy’s billing partner, and the system was implemented in three days.


With a new client contract coming in that would expand their billing needs, they needed a solution that could:


  • Recognize revenue per the GAAP accounting standards and rules

  • Automate revenue recognition in a way that works seamlessly with their current billing solution

  • Work seamlessly with their existing tech stack


Of course, revenue recognition was the highest on the list, but Codacy also faced a challenge with its commissions. They needed something that could work in tandem with Chargebee, the existing billing solution - and be implemented quickly. Chargebee’s robust offering had the perfect solution: Chargebee RevRec, an automated, ASC 606-compliant revenue recognition solution.



The Solution


Since Codacy had Chargebee already in place, adding Chargebee RevRec to their existing billing structure was straightforward. Chargebee RevRec’s seamless integration with Chargebee billing and the team’s data sources made it the natural solution.


Chargebee RevRec ticked all of the boxes on Codacy’s evaluation list for a revenue recognition solution by:


  • Providing an easy-to-use and user-friendly software

  • Offering quick implementation

  • Having daily syncs for product catalog, customers, subscriptions, and invoices to ensure accuracy

  • Eliminating manual work & bringing in accuracy on mid-term contract modifications

  • Allowing commissions to be available alongside the sales contract

  • Amortizing commission revenue over time


Because of Chargebee RevRec’s seamless integration with Chargebee billing, the team could get another quick and smooth implementation.


With Chargebee RevRec, the team can quickly pull compliant, accurate reports such as Unearned Revenue Rollforward, Commission details, and Sales Order summaries that give precise information on their business health. Not only is the Codacy team reporting revenue accurately, but Chargebee RevRec also ensures the team is audit-ready per the GAAP accounting standards to grow their business confidently and compliantly.


"With everything we’ve experienced with Chargebee since implementing it in 2016, I feel Chargebee is a powerhouse in the industry, especially with the addition of revenue recognition to the billing suite. We were able to work with an amazing team that made implementation a breeze," said Frederico Câmara, Senior Accounting Specialist at Codacy.



The Impact


Since implementing Chargebee’s billing, Codacy has sent more transparent invoices and used Chargebee’s hosted checkout pages, which handle their PCI compliance and security.


With Chargebee RevRec’s automated revenue recognition process saving them hours of manual work, Frederico is able to shift his focus to more strategic initiatives for Codacy. As a result of streamlining the team’s accounting processes, Codacy saw some significant benefits from Chargebee RevRec, including:


  • The automation of about 90% of revenue recognition tasks, such as revenue allocation and amortization of sales commission

  • Up to 12 hours of work per month have been eliminated at the month-end close



Chargebee RevRec has been pivotal to our revenue recognition processes and is helping us stay compliant with the ASC 606 framework. Overall, it has been a huge value to our accounting team and it’s great to have control over the revenue reporting.

Frederico Câmara, Senior Accounting Specialist, Codacy

Tech Stack

Finance

Stripe, Chargebee

Operations

Zapier, Chargebee

Analytics

ChartMogul

Success

Zendesk, Intercom

We understood that we would fail if we tried to do it all. We'd much rather integrate with a solution like Chargebee than have to build it all by ourselves. Whatever works without you having to write code is probably the best solution. And ever since we started using Chargebee, it has been painless and has saved lots of development time. We made the right call by switching to Chargebee.
João CaxariaCTO, Codacy