For successfully managing a project’s revenue, the company needs to be really flexible & able to process different types of contracts. Learn more!
A company’s profitability is largely determined by two important factors: accurate revenue and timely billing of customers. In order to recognize the revenue of a project that is not billed when the goods or services are delivered, but through a recurring invoice based, for example, on the percentage of the project’s completion or as agreed in the contract, the company needs to ensure that the data it is working with is absolutely correct.
Project Revenue Recognition can be challenging for a number of reasons. When you depend on manual processes, one of the most difficult tasks is to estimate how much time might be required. When a company, therefore, utilizes manual work to complete dynamic resource and cost allocation charts, it is very easy to waste countless hours in discerning and correcting possible data errors. What is also truly troublesome is having to manage various different types of contracts and projects, like for example lump sum or fixed-price contracts. On the other hand, with the right software that will automate such processes, the project cost and efficiency are significantly improved.
For successfully managing a project’s revenue, the company needs to be really flexible and able to process different types of contracts that meet the requirements of every project. This is vital for a company in order to take advantage of every business opportunity. At the same time, it can be daunting to figure out whether you are exceeding your initial budget while managing a number of different other tasks and obligations. What can be also perplexing is the manual setting up of revenue roles which require teams to be able to allocate the costs of recourses and, also, to decide when to bill. All these factors are precisely what makes Project Revenue Recognition so complicated and, very often, what leads to its failure. This is why automation tools are so important in taking over such processes: it becomes much easier to implement the appropriate rules for implementing correct practices and, essentially, for recognizing revenue.
The aforementioned complications can be easily resolved with a professional services automation solution that can integrate the company’s project with all financial, CRM, ERP and HR data. More specifically such software offers:
- Increased automation processes which will assist in the completion of spreadsheets, repetitive data entry, and month end activities in much less time.
- The ability to manage different types of contracts and ensure that revenue from each line item is recognized correctly.
- Rule based handling frameworks that can recognize revenue, implement financial control, and optimize the entire project.
- Financial insights to monitor the different cost allocations, the billing for each contract or service, the invoicing, and also, the estimated revenue for every type of contract.
- Automated project deployments that enable businesses to be more efficient when it comes to recognizing revenue and managing all types of contracts. What is more convenient is that, through the automated project deployments that NetSuite SuiteProjects offer, you can isolate project billing in order to accurately calculate financial statements, safeguard compliance, and gain great forecasting insight.
SuiteProjects assist organizations to function better by ensuring that the monitoring and allocating of costs, the billing and invoicing of a project, and the estimation of the revenue are managed correctly. In this way, companies are able to complete every single project in the most effective and accurate manner. Ultimately, project revenue and company success are established, increasing the business’ overall efficiency and profitability.
To learn more about how NetSuite SuiteProjects work, you can watch the webinar Suite Fundamentals which includes a Revenue Recognition product demo. If you want to learn more about NetSuite, feel free to contact NetU. Our experts can assist you with all your queries and consult you on all aspects of your business. Also, you can visit our website for more information or contact us via phone or email.