My Office Apps, Inc. (MOA), an industry leader in business improvement software, announced it is now including an automated revenue recognition functionality in the finance module of its cloud-based Kechie™ Enterprise Resource Planning (ERP) software as a new feature.
The revenue recognition capability in Kechie will now make it much easier for customers to stay compliant with the Financial Accounting Standards Board ASC 606 specification, Revenue from Contracts with Customers. Revenue recognition is an accounting principle that requires a company to only record revenue when it has been earned, not when the related cash is collected. It is often needed when a customer provides an up-front payment for a service to be delivered later or for certain transactions where the product or service is delivered in parts over an extended period.The new Kechie feature offers automated revenue recognition capability and eliminates much of the tedious manual work needed to make account adjustments periodically to keep a company’s books up-to-date. Once a customer contract is set up in Kechie, the system will implement the necessary periodic accounting adjustments automatically, based on the length of the contact and how often the services are satisfied for recognition. The implementation is flexible for different periods to be setup, so if one wants to do this monthly instead of a quarterly basis, options are available.
Mariam Komeili, MOA co-founder and CEO, commented, “The laws for recognizing deferred revenue are a crucial part for recognizing revenue correctly. The process is often tedious and requires companies to use manual methods to be compliant. We are always trying to automate complex business processes and offer ways to simplify and automate as much as possible. Our dedication to our client’s needs is the driving force in providing the most innovative solutions in business automation.”