Globally, the number of IoT devices across all industry verticals is forecast to grow to more than eight billion by 2030. Businesses like the IoT because it allows additional, recurring revenue streams for hard goods and devices. However, moving to IoT adds considerable complexity to what may have been quite simple revenue accounting processes. These complexities include the need to manage subscription and consumption billing, contract renewal, and some of the most complex aspects of the ASC 606 revenue recognition guidance such as contract allocation, modification, and the handling of variable consideration.
The SOFTRAX Revenue Management System (RMS) enables companies to focus on scaling their core business, while it serves to increase automation, even in the context of a significant increase in complexity. Leveraging a proprietary policy and mapping engine, the SOFTRAX RMS removes the manual burden of handing both initial orders and subsequent change events, such as credits, cancelations, pauses, upsells, downsells, and a host of other forms of processing.
The five steps of the ASC 606 standard complicate revenue recognition and billing for the IoT, given the subscription billing model used and the need to reconcile revenue to contract obligations. The SOFTRAX Revenue Management System allows companies to meet the complexities of the ASC 606 for the IoT, while also automating key processes, such as contract renewals.
Do you know the five steps of ASC 606 and the impact of them on your revenue? The SOFTRAX ASC 606 Checklist can help.