Introducing Expense Recognition from SaaSOptics 

Introducing Expense Recognition from SaaSOptics 

We’re excited to announce the launch of Expense Recognition from SaaSOptics! Our team has been hard at work developing this product enhancement, and now we are ready to share it with the world. 

Why Expense Recognition? 

Like with Revenue, ASC 606 has changed the way companies must account for certain types of Expenses. 

According to the FASB, companies must now capitalize certain Expenses related to the procurement and fulfillment of individual contracts. This primarily affects sales commissions associated with individual contracts, but there are other types of Expenses, unrelated to ASC 606, such as Prepaid Expenses and Fixed Assets, that should be amortized as well. 

Our goal in developing this product enhancement is to deliver the same stress-free experience our customers enjoy when accounting for Revenues to the Expense side of the house as well.

How does it work? 

This workflow in SaaSOptics takes care of accounting for various types of Expenses: Sales Commissions, Prepaid Expenses, Fixed Assets, and Reseller Arrangements. 

No need to wrestle with complicated spreadsheets. Just record your Expense transactions in SaaSOptics, and the Expense Recognition module will automatically capitalize, recognize, and report on them for you. 

From there, our platform will push the information you need for your journal entries directly back to your GL. See our GL integrations page to learn more about which systems we support. 

What types of Expenses Does it Support? 

Great question! The Expense Recognition feature supports the following types of Expenses: 

  1. Sales Commissions 
  2. Prepaid Expenses (software licenses, etc.)
  3. Fixed Assets (computers, rent, etc.) 
  4. Reseller Arrangements (when you need to report net, not gross, revenue)

Does it calculate Commissions? 

The Expense Recognition feature does not calculate sales commissions. You will still need to calculate Commissions in a separate tool, but the Expense Recognition feature will help you recognize those Costs correctly and push that information back into your GL. 

How can I get Expense Recognition? 

This workflow will be a part of the core SaaSOptics product offering going forward. 

To learn more about it, talk to a Solutions Consultant today

About SaaSOptics 

SaaSOptics is a subscription management platform that automates financial operations for growing B2B SaaS businesses. 

A cloud-based solution, the SaaSOptics platform, allows businesses to quickly pull accurate SaaS metrics and analytics, scale billing and payments smoothly, and automate GAAP/IFRS-compliant Revenue and Expense recognition. 

Businesses built on SaaSOptics eliminate their risky dependency on spreadsheets and streamline financial operations. SaaSOptics is easy to use, trusted by investors, within reach for early-stage startups and provides a streamlined implementation process. 

SaaSOptics serves more than 900 customers worldwide and manages $8 billion in revenue.