Advanced Revenue Management (ARM)

Advanced Revenue Management (ARM) refers to a set of strategies and practices used by businesses to automate, streamline, and ensure accurate revenue recognition according to accounting standards.

Accounting and Finance

What is Advanced Revenue Management (ARM)?

Advanced revenue management (ARM) is a process designed to handle the complexities of revenue recognition in accordance with accounting standards such as ASC 606 and IFRS 15. ARM involves automating and managing multi-element arrangements, subscription billing and revenue allocation. ARM systems ensure that revenue is recognized accurately and timely, reflecting the true financial performance of a business. It's a term also commonly used in the context of NetSuite, a cloud-based Enterprise Resource Planning (ERP) software system.

Implementing ARM solutions can significantly reduce the risk of errors and non-compliance, which are common challenges in manual revenue management processes. These tools provide transparency and detailed reporting, making it easier for finance teams to track revenue streams and make informed decisions. Additionally, ARM systems can adapt to evolving business models and regulatory changes, ensuring that companies remain compliant and efficient in their revenue recognition practices.

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