Automating Complex Billing and Revenue Recognition
A Softrax Customer Perspective
Air2Web, a leading Mobile Marketing service provider, is a dynamic company that experienced many of the challenges
to their financial operations that inevitably accompany success. Managing rapid growth, very complicated pricing, acquisitions
and changes to their business model required them to automate many "The Softrax system automatically calculates revenue recognition for every line item and generates a transparent flow of revenue from the source contract to the General Ledger."
Mike Allpass, Vice President Finance/Controller Air2Webfinancial functions and eliminate manual accounting processes. That meant finding a solution able to handle their extremely complicated billing, with its tieredvolume discounts and minimums unique to nearly every customer. It also had to manage revenue recognition, ensure the accuracy and auditability of their revenue numbers and improve cash flows.
According to Mike Allpass, Vice President of Finance, the key to all of the requirements was the need to eliminate manual processes. "It took weeks to get the bills out, often they needed rework, and delayed bills meant delayed payments. Additionally, deferred revenue
and our unbilled revenue accounts were prone to error and challenging to reconcile."
In just a few months the Softrax business team had systematized their hundreds of customer volume-discount tables, as well as the business rules governing invoices for each contract and the rules that govern revenue recognition. The result is a system that
manages separate, automated schedules for billing and revenue consistently over time. It has reduced their billing time from two weeks to two days, improved their cash flows and the accuracy of their revenue processes, freed personnel to spend time on more meaningful activities and enabled them to scale without additional personnel.
"Life with Softrax is good." Allpass concluded.
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