This Is How You Can Use NetSuite’s Revenue Recognition For Unstoppable Growth

Revenue Recognition is one of the most critical GAAPs or Generally Accepted Accounting Principles, that enables a business to manage their finances and make appropriate plans to optimize productivity and profits.

 

In this blog, we will share how a business can leverage the benefits of Oracle NetSuite Revenue Recognition, and trigger unstoppable growth for their business.

 

But first, a brief introduction about the Revenue Recognition module from Oracle NetSuite.

 

Oracle NetSuite’s Revenue Recognition Module

 

NetSuite’s Revenue Recognition is one of the most powerful and feature-loaded modules that empower businesses to completely automate their revenue recognition process.

 

Unlike other ERPs, NetSuite fully complies with all the regulations & standards pertaining to revenue recognition for multi-element sales, such as the latest EITF 08-01 and 09-03 regulations and others.

 

Some of the regulations NetSuite Revenue Recognition complies with: 

 

AICPA, FASB and SEC regulations (including SOP 97-2 and 98-9, SOP 81-1, SAB

101, EITF 00-21.

 

With features such as Multi-currency and multi-subsidiary intelligence, companies can bid farewell to manual processes such as using spreadsheets to tally the numbers and instead deploy fully automated and Cloud-based revenue recognition systems.

 

How To Use Revenue Recognition In Your Business

 

Here are a few impactful ways any business can leverage the powers of Oracle NetSuite Revenue Recognition module:

 

Seamless 3rd Party Integration

 

With NetSuite’s revenue recognition module, the existing ERPs such as Oracle Financials, SAP R/3, NetSuite Financials, and third-party ERP Applications can be seamlessly integrated, thereby enabling the business to utilize the best features of all the platforms, and optimize their results.

 

Bi-Directional Integration Of Accounting Data

 

With such powerful integration with 3rd party ERPs and accounting platforms, businesses can utilize bi-directional integration of accounting data, to ensure more accurate revenue recognition.

 

For instance, businesses can quickly import invoices and orders from the existing ERP into NetSuite for revenue recognition, and at the same time export journal entries from NetSuite to the 3rd party ERP’s General Ledger for obtaining a high level of accuracy in revenue recognition and reporting.

 

Supports Different Sales Schedules

 

NetSuite’s revenue recognition module supports highly complex sales schedules for all types of sales, and this enables businesses to get immediately notified about revenue recognition: The exact time when revenue is due to be recognized. 

 

This enables the business to separate billing from the process of revenue recognition, along with setting up a dedicated and integrated workflow for simultaneous revenue recognition as well as billing. 

 

Supports Different Revenue Streams

 

With NetSuite, different types of businesses with different business models can effectively follow revenue recognition, specific and targeted for their own business model.

 

For example, NetSuite Revenue Recognition can differentiate between recurring billing and one-off billing-based revenues, which translates to more accuracy. 

 

If you are considering deploying NetSuite’s Revenue Recognition, then we at Inspirria can offer you professional guidance and mentorship.

Schedule a no-obligation consulting session with Inspirria, and explore the possibilities with the Oracle NetSuite Revenue Recognition module, that will help your business to gain an upper hand with accurate & timely revenue recognition.