Expense Recognition

Introduction

The expense recognition process is inefficient and time-consuming, with the resulting summary reporting not detailed or timely. Cloud-accounting solutions can help automate and streamline the end-to-end process by reducing manual processing, and compilation and ensuring businesses remain compliant with accounting standards such as IFRS 15 and ASC 606.

Typical Problems

Expense recognition can be time-consuming and labour-intensive due to the manual process of exporting and compiling data to be re-entered back into the accounting system, causing unnecessary delays with month-end reporting.

Reconciliation of accounts is traditionally a manual process and made even more difficult by using summary data posted, rather than the detail required to truly interrogate the data.

Solutions

A cloud-based cost recognition solution can reduce manual tasks and speed up the overall process with the implementation of an automated cost recognition module with multi-currency, multi-entity, and multi-dimensional capabilities.

Moving to a single integrated platform connects all the source data, whether that be opportunities, project milestones, subscription billing etc., to your accounting system allowing for seamless data flow.

Cloud-based revenue recognition solutions offer businesses a far more flexible level of reporting and insight as well as enabling the end-user to easily reconcile accounts with built-in tools including transaction reconciliation and reconciliation reports.

Other key features include allowing for either fixed or usage-based revenue recognition schedules/templates which are independent of billing, revenue forecasting and expense amortization.

Benefits/ROI

An integrated and automated cost recognition solution allows end-users to recognise costs easily across companies, gain deeper insight with powerful analytics and reduce the time taken to post revenue to the general ledger.

Businesses can take full control of expense recognition and stay compliant with accounting standards such as IFRS 15 and ASC 606, automate the posting of revenue recognition and improve the accuracy of reconciling the accrued and deferred general ledger accounts.

Ultimately, reducing the overall time taken to “close the books” at month-end and improving efficiencies across the finance team.