Ali S Rizvi, Founder and CEO
Early in his career at a big four accounting firm in Silicon Valley, Ali Rizvi recognized the challenges companies of all sizes had with billing, contract renewals, revenue recognition, and revenue forecasting. According to CFO. com, “One of the biggest challenges of running a SaaS company is handling billing and revenue.”
Struggling to keep track of contracts and their contents, companies used one tool for recurring billing, spreadsheets for revenue recognition and forecasting, and other manual systems for reporting financial information. ERP systems designed for small businesses were not built to handle all of these interconnected processes and data.
This impacts smaller companies the most because they have limited financial resources and cannot afford big expensive software solutions. Eventually, this leads to errors in reported revenue, ultimately costing thousands of dollars to fix financial restatements and impacting companies’ market value and staff turnover.
According to Rizvi, a typical SMB company has 6-7 finance-related applications. Intuit’s Quickbook solutions have successfully addressed the general accounting needs. Our goal is to consolidate at least 4 of them – Subscription contracts, billing, revenue accounting and SaaS reporting with TrueRev’s easy to use all-in-one subscription management platform. TrueRev is well aligned with Intuit’s 3rd party partner solutions and offers arguably the most well-integrated Subscription Management solution for Quickbooks Online users.
TrueRev’s customers now have insights into their customer subscriptions such as renewals, future expected revenue, and future expected cash flows, so investors have more trust and confidence in the company’s numbers. Cash flow is a top priority for small businesses, and with TrueRev, they will never miss sending an invoice to a customer again.
“There are only a few competitors in the contract-to-revenue space who are focused mostly on recurring billing and do not offer the ease of use and ‘out-of-the-box’ set-up, or the tools to manage contracts, revenue recognition, or revenue forecasting for small and medium-sized businesses that way we do,” adds Rizvi.
A CASE STUDY
One of TrueRev’s early customers, an IoT SaaS company, was keeping its 70+ subscription contracts within Salesforce, yet no one was maintaining them or keeping them updated. With staff turnover, it became even harder for the accounting team to know when to invoice a subscription and when to invoice a renewal.
As a former CFO, I know that TrueRev is an incredibly valuable solution for SMBs to transform their financial operations
Missing sending out invoices became a real problem, especially when they accidentally failed to invoice a customer for $30K; a significant hit on cash flow for this start-up company.
On top of this, a massive spreadsheet with elaborate and complex formulas was being used to track revenue, MRR, contract value, invoices collected and more. Every month, it took several days to configure and update the spreadsheet. The spreadsheet’s author eventually left and there was no one equipped to take over. Outside resources were brought in to help manage billing and revenue —adding to the cash flow burden of a young and growing company.
To solve these many issues, the company deployed TrueRev, which eliminated the excessive time wasted in maintaining revenue in a spreadsheet and manually sending out invoices. The entire process, from subscription contracts to scheduling invoices out into the future, to forecasting revenue, had an immediate and positive financial impact on the company.
TrueRev has future plans to incorporate AI to analyze data such as contract size, duration, invoices sent, future cash flows and revenue forecasted to allow chief financial officers to sales operations leaders to see patterns from these data points to make big decisions. TrueRev’s reporting and analytics capabilities provide companies a clear picture of their revenue, MRR, ARR and customer renewals and retention metrics.
Companies can be up and running in a matter of a day with TrueRev, unlike other subscription platforms that require heavy implementation services for setup. TrueRev connects very quickly with Quickbooks and pulls in customer invoices, as well as information necessary to help customers begin setting up subscriptions and contracts on the same day. TrueRev also offers email support and assists clients with configuration and pulling in and saving historical information. TrueRev is truly unique in its business model, making it a one-stop-shop with modules from contract management, billing engine, and revenue engine, right up to its reporting portal being connected, making all processes within accounting seamless and swift.
The company has proven its mettle with several subscription renewals from existing clients and has replaced the excel-based revenue schedules for them, which has created immediate ROI. Customers can have access to quarterly as well as annual revenue reports in a matter of a few seconds. TrueRev has been approached by several Canadian companies and has expanded its outreach in the UK, Australia, and even Japan. The company is focused on growing its existing customer base and is working on adding foreign currencies and integrating with payment providers to allow for an even more robust end-to-end solution.