Recurring Revenue Ripples Through Revenue Recognition

The momentum continues in 2021 where enterprises are accelerating digital transformations if they were already planned, and if they were, new digital transformation efforts have been launched. Enterprises are moving to conduct more of their B2C business online (of course) and B2B businesses are also moving to conduct more business online. With the exception of a few industries that were hard hit like travel, restaurant, many large enterprises thrived. Especially companies who leverage technology to deliver value to clients on a subscription-based, consumption-based, or recurring revenue basis. But it was not without twists and turns.

All of these pivots are happening in the middle of a contract cycle. So how has delivery changed from what was committed? How does this affect multi element arrangements changed? Many midcycle changes create a ripple effect beginning with the business providing the service and the customer’s usage, through billing, payments/collections, onward to recognition of revenue.

SOFTRAX is joined by Michael Carrell from Aria Systems to explore the challenges subscription and consumption based billing models present and the even more complex ramifications that may exist in downstream or parallel revenue recognition processes.