saas•hapily blog

How to Improve Your Revenue Recognition?

Written by Niklas Vaittinen | Mar 31, 2023 3:22:11 AM

In order for SaaS businesses to maintain growth and offer seamless value to their customers, automating financial processes is crucial, particularly revenue recognition, which becomes more intricate as the business expands. This automation can serve as the decisive factor that distinguishes the successful companies from those that struggle to succeed.

1. Data and reporting

Decisions are made on data and accurate reporting. Therefore you need to be able to investigate not simply your channel conversion attribution, but look at each touchpoint, from first click to commitment to post-purchase actions. 

As revenue recognition is data focussed, saas•hapily can help to build these reports, as you can build your reports on Hubspot, but using data from other sources, especially Stripe.

2. Pricing models

Most subscription services have to offer a level of flexibility, in order to cater for different customer needs, and to minimize churn. 

For revenue recognition, it is important to take into accont different pricing models, such as usage model, different levels of upgrades and downgrades, as well time-based models.

3. Scaling your business

If your product is part of helping your clients grow, it is likely that you will also need to keep up, and develop your product as the demands and feature requests arise.

Revenue recognition should help to understand which features should be prioritized over others, as well as communicate efficiently to your clients on your development pipeline and feature requests.