Overview

Required plan

This feature or setting is available to all customers on any Recurly subscription plan with an additional cost.

Additional cost

This feature or setting requires an additional cost. Please reach out to your Recurly account manager or [email protected] for more pricing details.

Definition

Recurly Revenue Recognition Standard is a comprehensive, integrated solution within Recurly's subscription management application designed to streamline and automate the process of revenue recognition in accordance with major reporting standards, including ASC 606 and IFRS 15.

This powerful tool simplifies how businesses track, manage, and report revenue accurately by enabling users to effortlessly establish recognition rules and automate accounting processes through a single, user-friendly interface. With Recurly's revenue recognition standard, organizations can benefit from detailed insights into contracted revenue via extensive built-in reports, such as the Revenue Waterfall Report, Liability Balances Report, and Transfer Accounting Report.

The end result is a significant reduction in audit and revenue reporting errors, elevated compliance standards, and enhanced revenue insights and accuracy, empowering businesses to focus more on strategic activities rather than complex revenue calculations and compliance tasks.

Key Benefits

Streamlined accounting process: Recurly's revenue recognition standard automates the complex process of revenue recognition, aligning effortlessly with major accounting standards like ASC 606 and IFRS 15. This automation allows for more efficient and accurate accounting operations, freeing up valuable time for your finance team to focus on strategic initiatives.
Enhanced compliance and reduced errors: By providing a tool specifically designed to conform to recognized accounting standards, Recurly ensures that your business is consistently in compliance with relevant regulations. This significantly reduces the risk of audit issues and costly revenue reporting errors, thereby safeguarding your company’s financial integrity.
Insightful and comprehensive reporting: Recurly’s revenue recognition standard includes built-in, detailed reports, such as the Revenue Waterfall Report, Liability Balances Report, and Transfer Accounting Report. These reports offer valuable insights into contracted revenue, enabling better decision-making through clear and accurate data. It empowers businesses to have a granular understanding of their revenue streams and financial standing.

Steps to implement

Apply the appropriate rules to each of the products you offer, such as plans, items, add-ons, and set-up fees.
Go through the validation and activation protocol to ensure accurate rule application and reduce errors.
Examine the information after it flows into the reporting.

Helpful tips for using Recurly Revenue Recognition Standard

Carefully and accurately configure the settings to ensure precise revenue recognition.
Regularly review the key reports to monitor your revenue streams, identify potential issues, and discover areas for improvement.
Follow-up on how each line item on the invoice was recognized at the bottom of invoices.
Consider seeking guidance from an accountant or financial professional to ensure compliance with accounting standards and best practices.
To maximize the benefits of Recurly revenue recognition standard, we recommend regularly reviewing the key reports, monitoring revenue streams, and using the insights gained to make informed business decisions and optimize your revenue recognition process.

FAQ

Q: Is it a prerequisite to be on the Professional plan for Standard and on the Elite plan for Advanced?

A: There are no prerequisites for the Standard edition, allowing you to access it without any specific plan requirement. However, for the Advanced edition, it is necessary to be on an annual plan to be eligible. If you need assistance in selecting the best option for your needs, please reach out to your Recurly account manager or [email protected] for more details.

Q: Can I purchase the Standard edition as a standalone product?

A: No, the Standard edition of Recurly Revenue Recognition is not available as a standalone product. It is a feature embedded right within the Recurly platform. To access the Standard edition, you will need a Recurly subscription. However, Recurly Revenue Recognition Advanced is available for purchase as a standalone product.

Q: Which is better for me - the standard or advanced solution of Recurly revenue recognition?

A: To determine which version of Recurly revenue recognition—standard or advanced—is the best fit for your business needs, please reach out to our support team at [email protected]. They can initiate discussions with the appropriate personnel to assist you in making an informed decision.