To address this issue, the company announced Wednesday (Oct. 14) that it is expanding its revenue tracking software to serve professional services firms, systems integrators, and technology service providers.
“Services revenue has a unique challenge. The contract, project, timesheet, resource and invoice may each sit in a different system,” xfactrs CEO Ravin Checker said in a news release.
“The leakage often happens between those systems. Revenue Assurance gives services companies a way to continuously validate that what they sold and delivered is actually making its way to the invoice and ultimately to revenue.”
The release cites a projection from John Ragsdale, former distinguished researcher at TSIA and former vice president and research director at Forrester Research, who has estimated that revenue leakage in services organizations can reach around 25%.
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“Services organizations have an enormous amount of revenue moving through people, projects, contracts and systems,” he said. “Without visibility across that lifecycle, significant revenue can fall through the cracks between what was contracted, delivered and ultimately billed.”
The company says it applies ongoing revenue assurance across this lifecycle by linking data from “CRM, contracts and SOWs, PSA and project systems, time and expense platforms, ERP, invoicing and collections.” The artificial intelligence (AI) controls and anomaly detection continuously compare “what should have happened with what actually happened.”
According to the release, the platform monitors millions of transactions and has detected more than $50 million in uncollected income across its customer base.
PYMNTS wrote last week about AI and automation’s increasing role in the payment space, with 70% of payment-heavy firms saying they plan to add or expand automated payment matching within the next 12 months.
“Much of payment processing already happens without an employee touching the transaction,” that report said.
“The ‘hands-on’ interactions come when payments fail to clear, or transactions trigger fraud reviews. In other cases requiring manual oversight, payments don’t match the invoices, ledgers or bank records surrounding them.”
The report also cites data from the August PYMNTS Intelligence report “Payment Protection: Why Firms Still Aren’t Real-Time Ready” showing that in addition to the abovementioned 70% of companies, 59% plan to add or expand artificial intelligence (AI)-based fraud detection.
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