Stripe has taken the covers off a new financial reporting tool designed to simplify a key aspect of time-sapping accounts processes (opens in new tab) for SaaS businesses.
Its new Revenue Recognition tool has been engineered so it can automate many of the facets of revenue recognition, including when a customer receives a product or uses it, as opposed to when they paid for it.
The move will help to more effectively document customer behavior, especially when it comes to revenue recognition, which is a central part of Generally Accepted Accounting Principles or GAAP.
- We've also featured the best website builder (opens in new tab) offerings
- Take a look at the best content marketing tools (opens in new tab) around today
- Check out the best online marketing services (opens in new tab) as well
Revenue recognition has long been a complex and challenging prospect for many businesses, especially those who operate subscription-based or recurring revenue arrangements. Traditionally, revenue recognition has been a largely manual procedure whereby finance staff previously needed to log details via an Excel spreadsheet (opens in new tab).
Stripe’s new Revenue Recognition tool should help alleviate much of the manual intervention by delivering automated income statements (opens in new tab) and revenue waterfall tables.
Similarly, the automatic processing will log all transactions and the system can even be used to import non-Stripe transactions, further smoothing the process of revenue recognition. Crucially, there’s compliance support, so businesses need not worry about meeting common standards including ASC 606 and IFRS 15.
The new Revenue Recognition tool is another tool in Stripe’s growing product portfolio. Businesses can also make use of Stripe Tax (opens in new tab), its tax compliance tool along with Stripe Identity (opens in new tab), which helps business owners keep closer tabs on identity verification (opens in new tab).
Stripe announced the latest launch yesterday and has already made the product available in over 40 countries around the globe.
- Also, check out our roundup of the best ecommerce hosting (opens in new tab) services
Via: ZDNet (opens in new tab)