Expert Tips for Choosing and Implementing Revenue Automation Software
Businesses now expect their accounting and finance teams to be more proactive and able to analyze real-time financial data, which requires the support of new technology like revenue automation software. But at the same time, nearly 70% report that they do not have the right technology to address these growing demands from the business.
By automating repetitive and time-consuming tasks, companies can reduce errors, improve cash flow management, and provide real-time insights into financial performance. This allows businesses to make more informed decisions, quickly adapt to market changes, and focus on strategic initiatives that drive growth.
Are you automating enough?
The State of Revenue Accounting Report found that 79% percent of accounting and finance leaders say that they need a higher level of automation.?
As your business grows and scales to meet changing customer needs, shifting industry trends, and compliance requirements, you will inevitably find your revenue recognition processes becoming more complex.
To keep up with the rapid pace of change, your accounting team will need greater levels of automation and more agile technology that is purpose built for modern revenue recognition. According to MGI analysis, most companies who adopt an end-to-end revenue automation solution can see a positive return on investment (ROI) in just two quarters.
How revenue automation software can help
Modern revenue automation solutions are specifically designed with the needs of today’s revenue accountants in mind. These specialized solutions function as a revenue subledger by capturing transaction and revenue event data from an existing billing system, CRM, ERP, or payment gateway and then automating the revenue recognition process. The resulting journal entries can then be fed seamlessly back into the general ledger.?
This increased revenue automation can help minimize manual processes, reduce risk, and prevent revenue leakage. And, with increased automation, revenue teams are able to devote more time to analytics and business partnering.
The following are business initiatives that may drive the need for revenue automation software:
Implement revenue automation with the right technology
Zuora’s Revenue Accounting team was facing many of the same challenges companies face when they’re not taking full advantage of the capabilities of revenue automation.?
Zuora had a long revenue close process of at least 15 days, which often resulted in team members working long hours and weekends. The Revenue Accounting team also experienced increasing costs due to manual processes and audit fees.
In addition, a decade of accumulated technical debt made our system less scalable while making it difficult to obtain real-time numbers for forecasts and adjustments. The old system also led to an increasing need for customization, which complicated commercial deals and slowed down the go-to-market motion.
By upgrading our own implementation of Zuora Revenue, we were able to streamline billing and revenue operations to ensure data flows seamlessly across systems, leading to an optimized quote-to-revenue process. The improved system also removed the need for customizations and enabled us to quickly adapt to new business models and pricing strategies.
More than just upgrading our systems—this endeavor was about transforming our approach to revenue management to support our dynamic business models and evolving demands.
“As a Chief Accounting Officer, I want to be able to say ‘yes’ to things that make sense commercially, so we have to be able to handle new business models, products, and offerings. With Zuora Revenue, we’re able to be more agile to support the business so we can evolve with customer demands and go to market quickly.”?- Matt Dobson, Chief Accounting Officer, Zuora
Zuora’s Revenue Accounting team surpassed original efficiency goals and reduced close time to 4 days—over a 70% improvement. Another major improvement with Zuora Revenue was the decrease in manual work and associated errors, which helped to reduce audit risks and costs.
Out-of-the box improvements
“We used to have someone spending a day and half during close manually remapping data to be able to get the data from one system to another. Now this happens automatically, just with the press of a button, because the data is accurate and the systems really do talk to each other.”? - Rachel Noel, Director of Revenue Accounting, Zuora
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How do you choose the right revenue automation solution for your business?
To start, you need to be sure that the revenue automation solutions you’re considering have the right features and capabilities to support your unique business needs.
Look for an end-to-end revenue automation solution that includes:
Next, you can use this roadmap of key considerations to help you evaluate and select the right solution for your business.?
Understand the needs of your team
By speaking with revenue accounting team members early in the process, you can understand the obstacles they’re currently facing. For instance, 74% of revenue accounting team members agree that their team needs to focus more on analytics and business partnering, but a lack of automation is holding them back
To get started, list out the risks and costs associated with the current process. Use team member feedback and outside expertise if needed to compile a list of preliminary solutions and recommendations.
Understand the needs of the business
Speak with other stakeholders within the business to understand both current and future use cases and the needs of other teams. You will need their assistance to implement and enforce new processes.?
Stakeholders are not limited to, but may include:?
Document current and future use cases
How are things being done now and how would you like to see them change??
To find the right technology for your growing business use cases, start by documenting them or creating examples in a spreadsheet. Include contract information, SSP allocations, billing and revenue accounting waterfall, and the journal entries you expect a solution to create.
Be inclusive of all use cases that are being targeted for automation to allow for a flexible system design and end-to-end automation.?
Define your technical requirements
Once you’ve spoken with impacted stakeholders and documented current and future use cases, it’s time to work with IT to understand how the solution will work with your existing tech stack and corporate requirements.?
Compile a list of must-have revenue automation capabilities that your team will require from a new point solution.?
Secure executive buy-in
While revenue accounting team members agree that they need higher levels of automation, 67% say they struggle to get buy-in from leadership in order to implement these new solutions. Bringing leadership up to speed on the current process, risks, and the implications for supporting a new go-to-market model can help make the business case for automation.?
But getting buy-in from the top, especially the CFO, can be a challenge. So, what’s the best way to secure executive buy-in? Treat this like a sales pitch, complete with compelling events and a deep dive into discovery. Understanding the CFO’s perspective and employing sales techniques can turn a pitch into a compelling story that drives support for crucial initiatives.
Once you’ve clarified the scope of the project, documented use cases, and discovered solutions that may meet your requirements, it’s time to test and evaluate those vendor offerings. After you’ve evaluated findings from testing, research, and references, you’ll have the information needed to make an informed decision.?
How is your product different than Google Publisher Revenue Manager?
Entrepreneurial GTM Leader | 0-30 ARR | SaaS & AI | Ex-collect.Ai | Ex-Billwerk+ (Exit) |Revenue Architect | Deloitte Technology Fast 50 Winner | Passion for Technology & Process | HumanCentricity
5 个月Spot on! The necessity of revenue automation software is something I can confirm firsthand. From my extensive experience building billwerk and working at collect.ai, I see the immense importance and benefits of automation and AI in financial and receivables management every day. Without these technologies, companies fall behind. Modern technologies like Next Best Action Assistants are no longer optional—they’re essential. Additionally, payment prediction and data enrichment are crucial—what good is the best software if you lack current contact details? AI is the game-changer for revenue recognition, subscription management, and order-to-cash applications. There are few other areas of AI application that have such a high positive impact on cash flow, liquidity, and total cost of ownership. Companies that don’t keep up risk severe disadvantages. Your examples clearly show that action is needed to keep up with market dynamics.