Zuora‘s 2023 State of Revenue Accounting report has found revenue accounting teams are grappling with the complexities of modern revenue streams.
With the constant innovation in business models, there’s a pressing need for revenue accounting teams to upgrade their skills, technology, and processes. A majority of respondents, 76%, have noted increased scrutiny from auditors over the past three years. 65% are worried about misstatements due to existing manual processes.
The well-being of revenue accounting professionals is at risk. 63% claim poor revenue processes negatively impact their mental health. Disturbingly, 19% have had nightmares concerning revenue data or processes.
There’s an evident disparity between business expectations and the current capabilities of revenue teams. 76% of revenue accounting leaders feel pressure from businesses to support new products and pricing structures. However, 68% confess they lack the technology to meet these demands.
Confidence levels in revenue data are at a low, with just 44% of respondents being highly confident in their revenue data. The main challenge pinpointed is bad data hygiene in upstream processes at 39%.
A staggering 79% of revenue accounting leaders see the need for more automation in their processes. This sentiment is underscored by the fact that they believe over half their time, 53% to be precise, is wasted on manual tasks.
Notably, acquiring executive buy-in for revenue automation remains a challenge, with 67% finding it hard to get support from finance and accounting leadership.
Zuora Vice President and General Manager of Zuora Revenue, Emily Daigle said, “With more pressure than ever to innovate, companies are increasingly introducing complex revenue streams that leave accounting revenue teams struggling to support these business requirements.
“Zuora’s State of Revenue Accounting report shows the opportunities for teams to automate mundane tasks, reduce risk and unlock resources. Better collaboration across accounting, finance and business leadership will help companies strategically address market demand and become more customer-centric.”
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