When the products of this software company really took off, they left the company’s primary accounting tools in the dust. With a subscription-based business model, the company had complex bills, revenue recognition requirements, and challenges in contract management. A move to SOFTRAX has fully automated these revenue activities, cutting financial cycle times by 75% and providing superior visibility into the financial present and future.
The company provides its software and services under several business models: some customers have perpetual licenses, but most are on annual subscription contracts, with set up and training fees charged separately and deferred over the contract term. While the division used an industry-standard application for their general ledger, most accounting activities—including customer tracking, invoicing, revenue recognition and reporting—were entirely manual processes managed from one spreadsheet with a tab for every customer.
The company had four primary requirements for a new system: it must manage deferred revenue, keep track of which products each customer owned, capture revenue by customer by month, and reduce billing cycle time. Management of deferred revenue was the most important.
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