Here at Gotransverse, we know that the final step in the quote-to-cash process — closing the books — is often the most involved and expensive. For companies with high volumes of transactions and multiple, complex monetization models, the processes of correctly invoicing clients and recognizing revenue from each transaction can be time consuming and error prone. These outdated processes take the finance team away from their core job functions and often result in revenue leakage, misreported data and compliance errors.

This is especially true in the marketing and ad tech industry, which is notorious for complex financial transactions, massive volumes of data and cutthroat competition. When accuracy is everything and near real-time reporting is critical to maintaining an edge, it’s easy to see why having a fully automated revenue recognition process is no longer just a best practice — it’s essential.

We wrote recently about the power of automation to solve for revenue leakage, but there is so much more intelligent billing platforms can do to ensure the last steps of the billing process (the final countdown, if you will) are efficient and error free, minimizing costs and maximizing profits.

5 Ways to Improve Revenue Management through Automation

The intelligent billing platform by Gotransverse is designed to take the headaches and errors out of revenue management by automating every step of the way.

1. Configure Revenue Recognition Rules

Revenue recognition refers to the specific conditions under which businesses can claim revenue (even if it hasn’t quite made it to their bank account yet). The more billing models your business uses, the more variation in renewal periods and usage rates and the higher volume of transactions, the more complicated revenue recognition can be. Managing all those rules manually can lead to significant frustrations and delays, not to mention mistakes. But with the Gotransverse intelligent billing platform, revenue recognition rules are configurable to your exact needs, automating the grunt work for increased efficiency, accuracy, standardization and traceability.

2. Ensure Out-of-the-Box Compliance

As new and revised revenue recognition guidelines such as ASC 606, GAAP and IFRS dictate the way finance departments operate, it can be nearly impossible to ensure constant compliance with revolving regulations. But as a cloud product, the goTransverse intelligent billing platform includes revenue management functionalities that enable out-of-the-box compliance, helping your finance department keep its i’s dotted and its t’s crossed, ready for an audit at a moment's notice.

3. Prevent Revenue Leakage

It is alarmingly common for businesses to experience revenue leakage — research shows that nearly half of companies lose up to 5% of their revenue due to outdated revenue management models and systems. From incorrect invoice line item calculations to too-high transaction volumes to limited time for personnel to handle collections thoroughly and methodically, there are no limits to the cracks revenue can slip through. But the Gotransverse platform’s automated invoicing, billing and collection capabilities seal those cracks, ensuring your business is accounting for and collecting everything it’s owed.

4. Minimize Customer Churn

The consequences of errors and delays due to inefficient billing processes affect more than just the back-office team. When mistakes and slowdowns behind the scenes lead to incorrect information being passed on to customers, missed renewal windows or unprocessed payments, customer relationships begin to unravel, leading to loss of cross-sell and upsell opportunities as well as invaluable word-of-mouth referrals. But by automating these processes, businesses can streamline the customer experience to support long-lasting relationships.

5. Save the Finance Team for the Real Accounting

Finally, whether your organization is staffing employees specifically to handle these revenue recognition processes or your core finance team is spending all their time wrangling these systems rather than focusing on their “real” accounting work, it’s a good bet significant resources are being wasted on revenue management efforts. Automating these processes not only prevents revenue leakage and optimizes opportunities, but it also improves the bottom line by enabling businesses to better allocate their human resources. Use automation to empower the experts to focus on their expertise, and the intelligent billing platform will handle the rest.

Staying ahead of the competition in today’s fast-moving business landscape, especially in industries like marketing and ad tech, requires juggling countless moving parts. To learn more about how the intelligent billing platform by Gotransverse can help your organization keep all the balls in the air — and gain a critical competitive advantage — contact us today for a free, personalized demo.