Understanding a business’ revenue is a huge job and requires its own special set of accountants called “revenue accountants”. These people help internal management, external investors, and analysts track, interpret, and grow a business’ revenue. They are hugely important to to any business and normally in high demand.
On the surface, revenue accounting might seem pretty straight forward – it just keep track of all the money coming in! However, as you dig deeper, there is a lot of complexity in the recognition of revenue activities, such as identifying why the business made the money and when it should be recognized as revenue. Revenue accountants must be able to navigate the variety of partnerships and agreements a company has and ensure that it is tracking money coming in and going out effectively. The job of a revenue accountant is further complicated by variations in currency exchange rates which can impact businesses with global operations.
One of the interesting characteristics of a revenue accountant is they will often work directly with a client of the business. In this role they ensure both that the company is receiving money owed but also distributing the money necessary to maintain key external relationships. The revenue accountant will be tasked with helping review contracts and in negotiations to ensure business partners are in line with key accounting requirements.
Accountants in this role will also work across the other areas like General Ledger (GL) and financial accounting to align each group around a common revenue framework. If you are interested in learning more about revenue accounting head on over to our college search section and find the school that’s right for you.