| Many technology companies have unique needs | | | | revenue recognition rules for maintenance. They |
| that impact revenue recognition, which in turn | | | | need to set up these billings in advance, so that in |
| impacts profitability, internal visibility and | | | | twelve months, they'll be able to go back and |
| compliance. The revenue cycle can be further | | | | remember to bill their customers. Tensoft RCM - |
| complicated by issues such as convoluted revenue | | | | revenue management software takes care of |
| recognition rules, complex billing, contract renewal | | | | this by allowing the user to define a recurring |
| variances and regulatory compliance restrictions. | | | | payment schedule to streamline the billing |
| Revenue management software, such as Tensoft | | | | processes. The software also allows users to put |
| Revenue Cycle Management (RCM) can have | | | | email reminders in place before the maintenance |
| significant impact on day-to-day business | | | | renewal is due. This way, a document can be |
| operations by streamlining business processes, | | | | attached to the contract so the details of the |
| providing efficient time-to-revenue recognition, and | | | | contract are always close at hand. |
| detailing fully auditable and traceable processes, | | | | Companies that have implemented Tensoft RCM |
| for instance. | | | | are not only making use of the features provided |
| Although the companies that use Tensoft RCM | | | | in RCM, they are also creatively adapting them to |
| vary widely, it's interesting to note what these | | | | their business processes and business needs. |
| firms have in common. Initially, a typical RCM | | | | Many are saving time by streamlining inefficiencies |
| customer has complex billing needs, such as the | | | | and eliminating manual data entry, noticing a |
| need for recurring billings or usage-based | | | | tangible increase in productivity. With RCM, there |
| measured billings, as well as the need to manage | | | | is a common data set for tracking contract details |
| deferred revenue and revenue recognition policies. | | | | which increases data visibility while allowing for |
| They are often overwhelmed and are looking for | | | | better and more accurate reporting. These |
| a reliable, automated way to overcome their | | | | streamlined companies place tremendous |
| problems. Most often, a typical, new customer will | | | | emphasis on their newly improved ability to see |
| have thousands of records of billings transactions | | | | forecasts - whether a recurring billing forecast for |
| and deferred revenue balances in an Excel | | | | a customer or a forecast of revenue recognition |
| spreadsheet that must be updated manually on a | | | | by fiscal period. |
| monthly basis. Often, more than one user or | | | | This improvement also extends to their |
| department is updating the spreadsheet, in | | | | end-customers in terms of allowing them to |
| addition to the finance department. Manually | | | | better-understand their billings, forecasted billings |
| managing large volumes of business-critical data in | | | | and forecasted revenue. One of the primary |
| Excel is notoriously prone to error, so these | | | | benefits of relying on a system, like Tensoft RCM |
| companies are in need of a system, like Tensoft | | | | for revenue and deferral management is |
| RCM, that offers a repeatable and consistent | | | | compliance. RCM helps its customer companies by |
| process for managing their revenue in a reliable | | | | applying rules consistently and tracking changes to |
| manner. | | | | transactions by user login. This is impossible if |
| A typical issue is recurring billing for maintenance | | | | revenue is being managed in a spreadsheet, since |
| contracts. This is quite a common issue and one | | | | a spreadsheet is only as accurate as the last |
| that is a high pain point for many companies. Most | | | | user's edits. |
| companies have annual billing and deferred | | | | |