6 Revenue Recognition Software Solutions for SaaS Businesses

SaaS companies use a subscription-based model. They earn revenue when customers pay every month or year to use their services.

However, unlike traditional businesses where customers buy the products and revenue is instantly recognized, SaaS businesses can’t recognize revenue when they receive payments. They must follow certain rules set by accounting standards like ASC 606.

Manually recognizing revenue for a complex SaaS model can be tedious, time-consuming, and prone to risks and errors. Instead, you can use revenue recognition software to calculate revenue automatically and make financial reporting simple.

These tools help SaaS businesses quickly process month-end closing, improve forecasting, and maintain compliant financial records.
In this article, I’ll list six of the best revenue recognition software solutions for SaaS businesses. I’ll also walk you through how to choose the best SaaS tools to optimize revenue recognition.

Let’s begin.

What Is Revenue Recognition in SaaS?

In accounting, revenue recognition determines when and how a company should recognize revenue from its subscription-based services.

For SaaS companies, revenue isn’t counted when someone subscribes to the service and makes a payment but rather when it’s earned, which happens after the duration of a subscription, which can be monthly, yearly, or quarterly.

This ensures compliance with accounting standards like ASC 606 and IFRS 15, which require revenue to be recognized when services are fully delivered.

Revenue recognition software can help maintain accuracy in financial reporting and reduce manual errors in revenue recognition. This is why Attrock experts recommend using revenue recognition software alongside recurring billing software to manage subscription payments efficiently.

How to Choose the Best Revenue Recognition Software Solution for a Business SaaS

You need the best revenue recognition software to make revenue management easier for your SaaS business. However, with so many available options, it can be hard to determine which software works best for your needs.

Here are some steps you can follow:

Evaluate Your Business Needs

Before anything else, think about your business needs. Consider your revenue model, transaction volume, and compliance requirements. You’ll most likely need a more advanced tool if you have complex pricing structures, multi-element arrangements, or international operations.

List the Features You Need

Determine the non-negotiable features you’ll need from a revenue recognition software solution, including compliance with ASC 606 and IFRS 15. It could include automation of revenue recognition schedules, integration with billing software, and real-time financial analytics.

You can also list the optional features that are good to have but not always necessary, which could include multi-currency support, AI-powered insights, and advanced customization.

Research and Compare Your Options

After looking for revenue recognition software solutions that meet your requirements, the next step is to compare your options. Check user reviews, pricing structures, and available integrations. You can also consider accounting solutions that also help with SaaS revenue recognition.

Test the Software with a Free Trial or Demo

Many providers offer a free trial or demo. Take advantage of this to evaluate the tool’s capacity and how it works with your current tech stack.

Consider Scalability and Support

Choose a revenue recognition software solution that can grow alongside your business. It should be able to handle growing transaction volumes, evolving revenue streams, and future accounting changes.

You should also try to contact their customer support line to check if they can effectively help you with setup and troubleshooting.

Top 6 Revenue Recognition Software for SaaS Companies

To help narrow your search, I’ve listed the top six revenue recognition software solutions that cater to SaaS businesses.

1. Younium

Younium is a comprehensive revenue recognition software solution for B2B SaaS companies. It helps businesses automate billing and revenue recognition. It also ensures compliance with major accounting standards.

Younium provides real-time metrics and reporting, offering finance teams valuable insights into your company’s cash flow and overall financial well-being.

Key Features

• Automated invoicing and billing
• Real-time metrics and reporting
• Refines revenue recognition
• Accounts receivable management
• Subscription management

Pricing

Custom pricing

2. Zuora Revenue

Zuora Revenue is one of the best revenue recognition software solutions that can help businesses with complex billing and revenue models.

It helps you automatically comply with ASC 606 and IFRS 15 by making sure that revenue recognition is accurate and happens in real time. Along with powerful analytics, these features help SaaS companies achieve smoother financial operations.

Zuora Revenue is ideal for companies that handle custom contracts and dynamic pricing structures, as it provides continuous, real-time revenue tracking.

Key Features

• Faster close process with continuous, real-time accounting
• Powerful, real-time revenue analytics
• Recognition of complex revenue streams
• Reduced manual touchpoints

Pricing

Custom pricing.

3. Maxio

If you’re looking for a platform that’s good with financial operations and revenue recognition, Maxio is a great choice.

This revenue recognition software solution helps companies comply with ASC 606 and IFRS 15 while minimizing manual errors.

Maxio integrates with your general ledger, so it’s easier for finance teams to manage financial records and generate all-encompassing financial reports.

What’s more, Maxio can easily scale with your business and adapt to your growing needs.

Key Features

• Revenue recognition automation
• Integrate seamlessly with your general ledger
• Generate financial reports in one click
• Advanced revenue management

Pricing

Maxio offers a 30-day free trial, with paid plans starting at $599/month.

4. Chargebee RevRec

Chargebee RevRec is a fully automated revenue recognition software solution. You don’t have to calculate revenue manually because this tool automates the recognition process.

This revenue recognition software solution also allows you to customize revenue recognition rules. It can cater to different SaaS pricing models, including one-time payments, subscriptions, and complex contracts.

Key Features

• Fully automated and compliant revenue recognition process
• Integrate your ERP, CRM, billing, and payment gateway systems in one place
• Easy configuration of revenue recognition rules
• Real-time reporting and analytics

Pricing

Talk to the sales team to get estimated pricing.

5. NetSuite Revenue Management

NetSuite Revenue Management is a reliable revenue recognition software solution specializing in automation and compliance. With this tool, you can easily manage revenue plans and ensure accuracy in revenue recognition.

It supports multiple revenue recognition approaches, making it the best choice for SaaS businesses with various pricing and billing structures.

Additionally, with its powerful reporting features, finance teams can analyze revenue trends, simplify audits, and maintain a clear financial record. As part of the NetSuite ecosystem, this software integrates seamlessly with other NetSuite financial and ERP tools.

Key Features

• Revenue plan management
• Supports multiple revenue recognition approaches
• Improved forecast accuracy with real-time data
• Powerful reporting features

Pricing

Custom pricing.

6. Recurly

Recurly is a subscription billing and revenue recognition software solution that helps SaaS businesses maintain financial accuracy, transparency, and compliance.

With its multi-book, multi-entity revenue reporting, businesses can operate in multiple markets or currencies for effective revenue recognition.

Its fast implementation and simplified tech stack help minimize IT costs. That’s why it’s great for growing SaaS companies.

Additionally, Recurly integrates with various payment gateways, accounting tools, and ERP systems. By automating revenue recognition, Recurly helps finance teams focus on growth and strategy rather than manual accounting.

Key Features

• Automated, simplified revenue recognition
• Compliant with IFRS-15 and ASC-606
• Multi-book, multi-entity revenue reporting
• Lower IT costs with fast implementation and a simplified tech stack

Pricing

Chat with the Recurly sales team to request pricing.

Final Word

Revenue recognition in Saas can be challenging. To automate this process, businesses can take advantage of revenue recognition software, simplifying audits and reducing errors from manual processes.

The six revenue recognition software solutions I’ve listed here offer unique features that cater to various business needs.

Whether your priority is seamless integration with recurring billing software, advanced analytics, or real-time revenue tracking, there’s a solution that fits your requirements.

By using the right software solution, you can enhance efficiency while providing a strong foundation for long-term growth.

About the Author

Reena Aggarwal is Director of Operations and Sales at Attrock, a result-driven digital marketing company. With 10+ years of sales and operations experience in the field of e-commerce and digital marketing, she is quite an industry expert. She is a people person and considers the human resources as the most valuable asset of a company. In her free time, you would find her spending quality time with her brilliant, almost teenage daughter and watching her grow in this digital, fast-paced era.