How to Solve a Financial Pain Point for Your Business with Dinvy

DINVY’S REVENUE RECOGNITION FEATURE SIMPLIFIES THE ENTIRE REVENUE RECOGNITION PROCESS

revenue recognition explained

Revenue Recognition is the process of claiming revenue by earning it. When Neostella gets a deposit from a client or invoices for fixed bid projects those funds cannot be claimed/taken as revenue because work has not always been completed yet to justify the revenue.  Only once staff have logged time to the project can Dinvy recognize revenue equal to the time that has been worked (amount worked x agreed upon bill rate per hour).  Once a project is finished, any remaining revenue to claim can all be claimed if the project is fixed bid.  Think of it like a savings account. the client deposit goes into your savings account but you cannot use it till you earn it.

the struggle is real

For many professional services firms, the struggle to stay on top of the revenue recognition process is a very real managerial headache, with many companies relying on complex excel spreadsheets and hours of tedious manual work only to have to make “judgement calls” to get the job done. This makes the risk of errors and potential compliance risks a perpetual source of stress for those responsible for financial reporting. Thankfully, there is a solution.

use a tool with the capabilities you need

Dinvy is a rarity in professional services software, offering revenue recognition capabilities that take guesswork and “judgement calls” completely out of the mix. suggests the amount of revenue to claim based on work completed (hours logged in Dinvy by your team, so you know it accurate!) ensuring that you can substantiate the revenue booked. The revenue recognition function works for any type of project — deposit, retainer, or fixed bid/ milestone — giving you the flexibility you need. Simply click to claim revenue and all journal entries are made both against revenue and your unearned liability accounts . Dinvy records a trail of each transaction for each customer on every project available at the project level for easy reporting and accountability.  At a glance see revenue claimed, revenue remaining to claim, deposit balance and more.  

how it works

  • All Revenue Recognition entries auto sync to your general ledger allowing for full accounting system reports utilizing your existing accounting system functionality. 
  • Works with any type of project.
  • All transactions for every customer on every project is available at the project level Dinvy for easy reporting and accountability. 
  • At a glance see revenue claimed, revenue remaining to claim, deposit balance and more.  
  • Reduce invoicing times d by 1-2 days per month through the use of Dinvy invoicing and revenue recognition.