We are transitioning from a perpetual licnese model to a subscription model. We currently use Great Plains for GL. Does anyone know of an add-in paackage to track revenue and renewals that would integrate or a stand-alone system that is not as expensive as Softrax?
Subscription accounting systems
Answers
I am not familiar with any add-ons for tracking renewals, but I can tell you what we use to identify anniversaries for our clients. We use the Customer Since date in the customer card and then run a smart list to identify as needed. This is what my current company has been using for a long time and as long as your renewals are one date per company and not multiple dates depending on the date of addition this could work for you.
My company's products handle the subscription billings, compliance (if required - EITF, SOP), and revenue
The method described for tracking renewals in GP could work - but wouldn't handle co-terminus subsriptions or change management (as mentioned).
Your full set of needs probably falls into the following questions:
1) If you sold on premise solutions previously and are moving to subscriptions you probably have some 'agreement' based model for managing your customers. You will want to consider how the go-to-market business transaction flow matches up with your system needs.
2) 'Agreement' based renewals are helpful. You may also want to consider the types of reporting and analysis you would like. For example would you like to forecast revenue based on projected renewals?
3) Identifying if you have compliance requirements (EITF 08-01, SOP 97.2) is important if you want support for the revenue management. Many SaaS companies are now subject to EITF 08-01, while on premise software sales may require SOP 97.2.
4) It is helpful to consider how you manage the on-going customer relationship beyond the initial sale or the renewal. Change management can be more complex than the initial subscription sale.
5) It is also helpful to review the agreement for the exceptions. For example it is common to see overage charges on subscriptions - where you get up to xx count and beyond that you pay for usage.
Hope this helps.
Filed Under:
Technology