You are here: DIME Home > Finance > Is Your Revenue Reporting System Error Free?

Is Your Revenue Reporting System Error Free?

Revenue reporting is a basic performance measure of a company, but it can be complex to manage and has the greatest risk of errors and inaccuracies. According to a survey conducted by RevenueRecognition.com, revenue reporting is one of the most difficult tasks for many companies. More than 35% of the companies, who participated in the survey, reported that revenue recognition accounting is the most complex process to manage.

Author: Jdidata.com
Date: Nov 10, 2011 - 6:25:39 AM

Printer friendly page

Revenue reporting is a basic performance measure of a company, but it can be complex to manage and has the greatest risk of errors and inaccuracies. According to a survey conducted by RevenueRecognition.com, revenue reporting is one of the most difficult tasks for many companies. More than 35% of the companies, who participated in the survey, reported that revenue recognition accounting is the most complex process to manage.

Many companies are facing similar problems with their revenue reporting systems. Since revenue is the key factor for every business, it is essential to employ an efficient tool which helps the organization to avoid risks associated with the error reporting.

In this article, we will discuss about the importance of reporting revenue, why many companies are struggling with their revenue reporting systems and how to ensure accurate and consistent reporting.

Revenue reporting is key process – it’s more than just a billing activity: Revenue reporting is a critical process which deals with complex business transactions. It helps investors and business executives understand the profitability and the sales results of any business. It is more than a billing activity, it provides strategic information about the business operations, assists in effective decision making and helps to identify competitive advantages, core competencies, and the problematic areas.

Many companies are relying on spreadsheets: The complexity of maintaining a business is continuously increasing these days. Customers and investors are expecting more returns on their investments. Financial professionals are dealing with complicated contracts and stringent regulatory frameworks. All these factors are making it very difficult to recognize the revenue properly.

Though the complexity of maintaining a business is increasing day by day, many of the companies are still using spreadsheets to handle complicated and critical revenue reporting tasks. The above mentioned survey reported that 92% of the public companies are using spreadsheets for one or more critical revenue accounting activities. Companies are still using spreadsheets in spite of being aware of the risk associated with them, due to the lack of knowledge about the availability of specialized applications for revenue reporting.

Issues with spreadsheets: Spreadsheets are no longer sufficient to handle today’s complex revenue reporting challenges. It is very difficult to maintain billing and other revenue processes accurately and consistently using those outdated methods. The reporting processes driven by spreadsheets do not meet the operational and compliance requirements for accurate and timely reporting. Errors in spreadsheets impact the organization financially and hence are not reliable to perform complex transactions like revenue reporting. Spreadsheets are difficult to use and they require extraordinary effort to maintain. Spreadsheets are more prone to revenue leakage, and are main cause of delays in reporting revenue, slower billings and renewals.

Implement a holistic and comprehensive solution: In order to lower the risk of reporting errors, one needs to identify new opportunities that can steadily analyze and report existing revenue streams. Many revenue management tools are readily available in the market that automatically perform consistent revenue reporting processes like pre booking analysis, event monitoring, forecasting, and internal controls. They can effectively face complex managerial challenges.

The risk of reporting revenue errors can be constantly eliminated by replacing old revenue reporting systems with effective tools. This also increases transparency and accuracy of the reporting information which helps the organizations to address the risks effectively.

JDi Data Corporation has provided insurance claims software since 1992. JDi Data offers web based workers comp software and also claims systems for insurance claims departments, third party administrators and risk managers to administer property, casualty and general liability claims. JDi Data has built a reputation in quality claims management software with special emphasis on specialty lines and complex litigation.

View all articles by Jdidata.com

Link to this article:

Code to copy:

<a href="http://www.dime-co.com/finance/Is-Your-Revenue-Reporting-System-Error-Free.shtml">Is Your Revenue Reporting System Error Free?</a>

---

Search for articles: Advanced Search

Recommended Associates

Latest Articles in All Categories

Putting Up a Small Commercial Printing Business

So You Might Be Unemployed And Desire To Become A San Francisco Real Estate Investor Now

Meditation and Mindfulness: Dealing With Emotion

CPA Websites: Five Essential Ideas for Composing Convincing Articles

Set Goals In Order to Come Up With Your Action Plan

Is the Air in Your Home Safe to Breathe?

Coarse Fishing Tackle Review: The JW Young 13ft Trotter Rod

Section 1031 Exchanges For San Diego Real Estate Investors

Phoenix Real Estate Investing For Highest Possible Earnings

Legendary are the Volk Racing TE37 Wheels

Developing the Next Generation Wall Station (ChaseDesk™) for Healthcare - A Case Study

What are step down transformers?

Introducing Sharehype, the Revolutionary Tool for Online Marketers

Rewards To Shopping For Austin Real Estate On The Web

Hydroponics for Beginners

Do you write?

Would you like submit your articles and have them approved on a priority status? Find out more about how you can become a Priority author for pennies a day! Click here.

News Feed

Dime-co.com Home

Business (9328)

Computers & The Internet (5740)

Entertainment (1348)

Family (958)

Finance (1963)

Health (4246)

Home and Living (6670)

Marketing (6113)

Shopping & Product Reviews (2624)

Sports (694)

Travel and Vacations (1689)

Video Articles (1)

Editors Pick (1)