Overview

Recurly Revenue Recognition overview video

Venture into our concise video overview and unveil the power of Recurly's Revenue Recognition product. Crafted for enterprising merchants, we're poised to reshape your financial reporting and drive revenue growth. Jump in, and let's magnify your monetary momentum!

Plan availability

This feature is only available to customers on the Professional and/or Elite subscription plan. To request to upgrade to this plan, please reach out to your Recurly account manager or [email protected] for more details.

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.

Key benefits

• Data sharing & integration tools: Secure and adaptable tools ensure smooth workflows across all facets of your subscription business.
• Expansive Recurly partnerships: Seamlessly integrate with numerous CRM, ERP, and other essential systems for a holistic business approach.
• World-class security & compliance: Scale confidently with top-tier security infrastructures and adherence to global standards.
• Comprehensive business growth support: From onboarding to expansion, Recurly offers expert services tailored for subscription businesses.

What is ‘Revenue Recognition’?

Revenue Recognition is a fundamental accounting principle that determines when and how revenue should be recognized on a company's financial statements. It outlines the rules and guidelines for when revenue can be recorded as earned and how it should be allocated over time.

In simple terms, revenue recognition is about properly recognizing and reporting the income a business generates from its products and/or services. It ensures that revenue is recorded in the right period and matches the corresponding costs and expenses.

Compliance with revenue recognition standards, such as GAAP (Generally Accepted Accounting Principles) in the US and IFRS (International Financial Reporting Standards) globally, is essential for businesses to maintain transparency, accuracy, and consistency in their financial reporting.

Under ASC 606/IFRS 15 five steps have been identified to determine revenue recognition:
Step 1 – Identify contract with the Customer
Step 2 – Identify the separate performance obligations within the contract
Step 3 – Determine transaction price
Step 4 – Allocate the transaction price to the separate performance obligations
Step 5 – Recognize revenue when (or as) the entity satisfies a performance obligation

By following these standards, businesses can provide a clear and reliable picture of their financial performance, which is crucial for investors, lenders, and other stakeholders to assess the company's health and make informed decisions.

Why Recurly Revenue Recognition?

Before we dive into the specifics, let's highlight the benefits of using Recurly Revenue Recognition in general. By leveraging our robust revenue recognition capabilities, you can:

Cut time and costs for revenue compliance: Say goodbye to manual, error-prone reporting processes and higher accounting and audit costs associated with ASC-606 and IFRS compliance. Recurly streamlines Revenue Recognition, automating the entire process and ensuring accurate and compliant revenue reporting.

Achieve unified billing and revenue recognition: With Recurly, you can bridge the gap between billing and revenue data. Our amazing solution seamlessly integrates billing and revenue recognition, providing you with a unified view of your financials and eliminating any disconnected data silos.

Gain valuable revenue insights: Unlock powerful revenue insights across periods with Recurly's comprehensive reporting capabilities. Say goodbye to limited visibility and hello to real-time revenue waterfall and liability reports. Make data-driven decisions and drive your business forward with confidence.

Recurly Revenue Recognition products

Recurly has designed a suite of Revenue Recognition products to cater to diverse business needs. Here's a closer look at each offering:

1. Recurly Revenue Recognition Advanced:

• Overview: A premium offering designed for businesses with more complex revenue recognition needs.
• Availability: Exclusively tailored for our Professional and Elite plans, ensuring advanced functionalities for larger or more intricate operations.
• Features: Includes advanced tools for detailed revenue tracking, in-depth analytics, and more granular financial control.

2. Recurly Revenue Recognition Standard:

• Overview: This is a foundational solution suitable for businesses of all sizes.
• Integration: It can be seamlessly integrated with any Recurly subscription management plan.
• Features: Provides essential tools for automating revenue recognition, ensuring compliance, and simplifying financial reporting.

3. Recurly Revenue Recognition Legacy solution:

• Overview: Our initial revenue recognition solution.
• Support: As our product suite has expanded, we remain committed to continuity. We continue to support this legacy solution to ensure uninterrupted service for our long-standing clients.

Each product is crafted with precision, ensuring that businesses can choose a solution that aligns perfectly with their revenue recognition requirements.

How does Recurly help you with your revenue recognition?

Recurly provides robust features and capabilities to support businesses in their revenue recognition process. Here's how Recurly helps streamline and simplify revenue recognition:

• Automated revenue recognition: Recurly automates the complex calculations and allocation of revenue, streamlining recognition according to the specific rules and guidelines of accounting standards such as ASC-606 and IFRS-15. This automation eliminates manual errors and saves time for finance teams.
• Multiple revenue models: Recurly supports multiple revenue recognition methods to accommodate various pricing and monetization scenarios. Whether you recognize revenue at a point-in-time or over-time , Recurly can adapt to your specific requirements. You can configure revenue recognition rules based on different billing events, subscription types, or performance obligations.
• Ready-to-use revenue reports: Recurly provides comprehensive revenue reports and packaged dashboards that give you a clear and real-time view of your revenue performance. You can easily track revenue waterfalls, deferred revenue and liability balances, and other key metrics across different time periods, product type, or revenue source . These insights enable you to make data-driven decisions and monitor the financial health of your subscription business.
• Integration with financial systems: Recurly seamlessly integrates with popular accounting and financial systems, such as QuickBooks, NetSuite, and Xero, to ensure a smooth flow of revenue data to the general ledger. This integration eliminates manual data entry and improves accuracy by synchronizing revenue recognition information between Recurly and your core financial or ERP systems.
• Compliance and audit support: With Recurly, you can confidently meet the requirements of revenue recognition standards and be well-prepared for audits. Recurly provides audit-ready documentation, detailed transaction histories, and granular revenue data that can be easily accessed and shared with auditors or accounting teams.

Advanced vs Standard Edition

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✔ = Feature or Add-on is available in this edition

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Want to know more?

For a detailed feature comparison between the Standard and Advanced Recurly Revenue Recognition solutions, please refer to our main site on our dedicated infographic