“Revolve your world around the customer and more customers will revolve around you.” – Heather Williams
ASC 606, or IFRS 15, is the latest accounting standard that requires companies to follow a standardized approach to revenue recognition from customer contracts. Can compliance with the new ASC 606 standard work as the Latest Customer Retention Tool? Yes it can. While doing so, it will also enables a business to streamline its accounting systems. For accounting systems to achieve the ASC 606 or revenue recognition compliance, data from many sources may need to be integrated with the ERP system for accuracy and efficiency.
Our new generation software, Commercient SYNC, the #1 data integration platform for sales, aligns and integrates your CRM and ERP systems. The data records mandatory for revenue recognition as well as better controls to meet the Standard, call for data automation which can be easily achieved by using SYNC as the interface. It also means automation of tiresome manual tasks and double entry, making it easier to refer and use the data.
There is a significant reduction in errors without duplication of data from sales and finance. You can input contract, orders, and quotations and structure it as per your requirements. The data that SYNC provides can be used to build a CPQ system, thus the information captured is consistent and reliable, and there is an overall improvement in the quality and visibility of the data for the Finance teams. Get accuracy in the revenue recognition process and forecasting using Commercient SYNC.
Most successful companies continuously monitor and automate their processes with the aim of retention. And meeting the ASC 606 revenue recognition standards works to streamline the business processes and aid the retention process. Compliance with the ASC 606 Standard requires organizations to populate the ERP systems with specific customer data. Apart from helping organizations reach compliance with ASC 606, Commercient SYNC data integration is bi-directional, allowing the flow of this critical customer data gathered in a CRM system, which is brought over in to the ERP. Commercient’s integration platform also integrates sales and marketing systems, and works as a very effective application in drawing customers to a business or brand.
Some of the data Commercient SYNC integrates from ERP to CRM includes customer information, such as bill to and ship to addresses, accounting records, and more; invoices, such as history, AR invoice header, and more; inventory levels; serial numbers; salesperson names; terms; and much more. And from CRM back to ERP, we SYNC new customer information; sales created in CRM; and more. SYNC helps cut costs and allows your sales team to close more deals and grow your business.
Feedback and analysis of the finance or accounting data automatically translates to a more personalized interaction with the customer. Meeting with the compliance requirements of any new Standard also complements the reputation of any company and that of its products and services. Such a process change also allows the company to gain perspective about the customer needs by using the ERP data as an untapped resource.
How a successful compliance with ASC 606 will improve customer interaction?
The customer or service data will now include personalized pricing and specific data about a product or service they purchase. Tailoring the product or service to meet individual needs is also cost for the particular Sale or Service will reflect directly in the ERP system for future reference. With more historic data available with service agents, they can further personalize their interaction with the customer. This gains them additional brownie points, as it makes the customer feel comfortable and valued, and which they are likely to appreciate. Readily available customer data reduces timeframes for resolution of complaints, as well as for replying to queries.