Revenue Recognition & Accruals AI
Classify each revenue transaction by delivery status and auto-generate ASC 606-compliant recognition or deferral entries. No more spreadsheet-based accruals that drift at month-end.
How It Works
Upload Trial Balance
Upload trial balance or transaction log from your ERP. The system accepts QuickBooks, Xero, NetSuite, and Excel formats.
AI Classification
AI classifies each line item by contract status, delivery milestone, and payment terms using ASC 606 five-step methodology.
Review & Post
System generates recognition or deferral journal entries with full documentation. You review and post to your ERP.
The Accruals Pipeline
AI classifies each line item, applies the ASC 606 five-step model, and generates properly documented journal entries for your review.
What You Get
ASC 606 Compliance
Revenue classification follows the five-step model with documented evidence for each determination and supporting calculations.
Multi-Entity Support
Handle intercompany transactions and eliminations across subsidiary entities with automated consolidation workflows.
Audit-Ready Documentation
Every classification decision backed by AI reasoning traceable to source documents and contract terms.
Variance Detection
Flag accruals that deviate significantly from prior periods with explanations and driver analysis.
Before & After
- Revenue recognized when invoices are sent, not when performance obligations are met
- Month-end accruals built in a 200-row Excel model — impossible to trace and audit
- 5–8 hours per close cycle per entity for a mid-size company with multiple contracts
- Variance from prior period detected only after close — no proactive alerting
- Multi-entity eliminations handled manually in a separate consolidation workbook
- External auditors spend 3–4 days reconstructing the recognition rationale
- Percentage-of-completion calculations maintained in a separate schedule prone to formula errors
- Revenue recognized when performance obligations are satisfied — ASC 606 compliant, always
- AI generates recognition/deferral entries with documented reasoning from contract terms
- 3 minutes per entity per close — same 5 entities close in under 15 minutes
- Variance alerts fire automatically when accrual amounts deviate >10% from prior period baseline
- Intercompany eliminations generated automatically from entity relationship mapping
- Audit trail exportable in one click — auditors review the reasoning, not reconstruct it
- POC percentages recalculated automatically when project costs are updated
How It Compares
Our previous accruals process involved a 200-row Excel model that took 2 days to build and was impossible to audit. Now I can walk a reviewer through every line item in 10 minutes — every recognition decision is backed by the contract, the delivery confirmation, and the AI's reasoning. Our external auditors commented that our documentation was the clearest they'd seen.
Connects with your ERP in minutes
MCP-isolated sessions per tenant — your ERP credentials are never shared across organizations.
Calculate Your ROI
See exactly how much time and money Revenue Recognition AI saves based on your entity count and contract volume.
Open ROI CalculatorFrequently Asked Questions
Ready to Automate Your Accruals?
See how much time you can save on your month-end close.