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Revenue & Expense Deferrals™ Maintaining a healthy cash flow is important for the success of any business and companies need to be prepared for the unexpected. A sale today may create an unplanned expense tomorrow, which may put a company’s balance sheet at risk. Almost too often, businesses are in a rush to report their sales as revenue without taking into consideration some of the contractual obligations they may still be liable for:
- Airlines may be subject to refunding passengers for their tickets up until they board their flight.
- Software companies may be subject to providing services throughout the lifetime of annual customer support contracts.
- Online retailers may be subject to refunding customers if goods are lost in shipment.
Revenue & Expense Deferrals, developed by SYSTRONICS llc, is a module of the Sage 300 ERP (Accpac) software that allows companies to amortize specific revenue streams, only recognizing them at a later date once all contractual obligations or other pre-defined parameters have been met. As a result, businesses are able to better manage their cash flow and reduce the impact of any unexpected financial shortfalls. The module also helps companies minimize risk by deferring expenses such as rent and insurance over the lifetime of their contracts.
Revenue & Expense Deferrals also helps organizations with financial compliance. Many countries have new laws and updated statutes that make businesses subject to compliance regulations, such as the Sarbanes-Oxley Act of 2002 (SOX), which is applicable to American companies and any organization conducting business with the US. Additionally, Revenue & Expense Deferrals promotes transparency within an organization’s accounting and reporting practices, which is fast becoming a standard requirement from most banks, financial institutions and investors today.
Download Revenue & Expense Deferrals Industry Solutions Guide (752 KB).
For more information on Revenue & Expense Deferrals, please visit: http://www.systronics.com/revenuedeferrals