Businesses Struggle With Changing Revenue Management Standards
Market demand is also leading to the adoption of new billing models, supported by more advanced software and technology.Chief financial officers (CFOs) and senior management teams are reassessing their revenue management practices and technology in response to shifting market conditions that demand new billing models. That's according to a FinancialForce and IMA survey of 6,000 accountants and financial professionals worldwide. Market demand is also leading to the adoption of new billing models, supported by more advanced software and technology, the survey found. The most common trigger of change in revenue recognition methods is billing models, followed by top management decisions, better software and changes to revenue recognition standards. "It's shocking that companies are still turning to spreadsheets to manage the financial health of their organizations," Raphael Bres, general manager of Financial Management at FinancialForce, told eWEEK. "Not only are they error-prone, but they require a lot of legwork on the part of the finance team. And they certainly don't equip a company to pursue rapid growth, given that the financial systems are fragile, complex and unable to scale quickly. There's no way around it: The fragility and complexity of spreadsheets make them inadequate to handle today's billing and accounting needs."
The good news, he said, is that strong revenue management applications are on the rise, and the data predicts this shift to continue.