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 may not be included in the Starter or Pro plans. If you are interested, please contact Recurly Sales to discuss upgrade options.

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:

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:

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