Chargebee is teaming up with Softrax, giving their customers access to both Chargebee’s subscription billing system and Softrax’s Revenue Manager revenue recognition software.
The revenue recognition system conforms to the revenue recognition standards under both U.S. GAAP (the older ASC 605 and the newer ASC 606) and International Financial Reporting Standards (IFRS 15).
Revenue recognition can be a complicated process for any business but for subscription companies, where usage, billing and revenue by default occur on different schedules, improperly managed accounting rules can become a risk to the business. The new revenue recognition standard was jointly issued by the Financial Accounting Standards Board and the International Accounting Standards Board in 2014 in an effort to create standardization around the world. All businesses, including private, public and nonprofits, that enter into contracts with customers to transfer goods or services are affected by the new standards and need to adhere to them.
Softrax’s software supplements ERP and financial systems to support the latest revenue guidance. More than 8,500 companies use Chargebee’s software to manage their billing, payments, subscriptions and invoicing services. By integrating Chargebee and Softrax’s systems, customers can now use Softrax’s revenue automation software with subscription sales.
“We pride ourselves in delivering revenue recognition software that’s easy to use, quick to deploy and that eliminates the complexities around regulatory requirements,” said Tom Zauli, senior vice President and general manager of Softrax. “By joining forces with Chargebee, we’re now able to deliver that same value and benefit to our growing number of subscription customers.”
For subscription billing, compliance with ASC 606 might involve capturing and reporting on information such as changes in customers’ subscription levels, mid-cycle cancellations, discounts, refunds and custom pricing. Acquiring new customers, scaling the business or retaining revenue all necessitate modifications to customer contracts in addition to flexibility in revenue recognition.
“As companies across industries continue to capitalize on the subscription-based business model, the ecosystem of solutions to serve this growing base continues to expand with it,” said Chargebee CEO and co-founder Krish Subramanian. “We’re excited about today’s partnership with Softrax as it marks another milestone in Chargebee’s mission to optimize subscription management for our thousands of customers, and facilitating the transition for new ones.”
