NumberSense^TM is a smart SaaS tool that deals with the complex area of revenue recognition for domain registries & registrars. It hooks seamlessly into other systems like back-ends and your general ledger systems and transforms cash sales or costs into accounting revenue and costs, relegating complex calculations to background noise and promoting finished article reports to the foreground. It has a suite of reports that are essential for external auditors and for internal reporting and BI analysis.

 

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Download the NumberSense^TM Information Flyer

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The Challenge

• Accounting & ICANN rules mean that calculating revenue recognition on domain sales is the most complex aspect of the domain industry
• Almost all gTLD registries outsource to back-end providers who are only contractually obliged to provide billing summaries (or even less). Invoiced Sales does not constitute accounting revenue so additional calculation work needs to be done to keep proper books and records
• Due to complex revenue recognition rules and audit trail record requirements, registries cannot perform these calculations in spreadsheets – or, if they do, they are tying up finance headcount and enhancing risk of error

The Solution

• NumberSense^TM was designed by accountants to handle the complex number crunching so that registries/registrars can concentrate their focus on running the business
• It sits between the outsourced back-end and the general ledger and performs a 3 step operation – A load/transform/unload workflow where domain transactional data is automatically loaded from the back-end provider system, transformed from transactional data into accounting revenue, and then is unloaded automatically into the general ledger

• It automates a manual process – saving on labour costs and audit fees

Features

• Built by domain industry veteran accountant who understands the subtleties of dealing with the myriad of domain life states & grace periods and their impact on revenue
• Designed with the complex calculation engine working in the background while the user is faced with simple choices to load, transform, export and run reports
• Handles complex entity structures and multiple string consolidation
• Scalability as a registry’s Domains under Management grow
• Data is exportable to Microsoft Excel^TM to facilitate further analysis and ad-hoc graphing
• Embedded audit trail features, allowing users to drill down from the general ledger revenue figure to an individual domain’s revenue history, and review the lifetime revenue recognition of each domain or at a group control total view
• Canned reports that provide a range of analysis for annual audit, financial reporting and BI analysis
• Save 0.5 FTE and 50% external audit fees – and minimise the risk of revenue misstatement (priceless)
• Over 40% cheaper in a Build vs. Buy analysis – without the execution risk
• 3 year ROI – 250%
• A low Total Cost of Ownership (TCO)

WHY DO YOU NEED NUMBERSENSE^TM for best practice Revenue Recognition?

• If your registry /registrar wishes to report in a consistent manner to industry leaders – make your financials comparable to public available industry intel
• If you are a registry or registrar that reports under Generally Accepted Accounting Principles (US & IAS)
• If you plan to sell your registry/registrar in the next 5 years
• If you want to save on staffing costs and 50% on external audit fees
• If you realise that using spreadsheets is time consuming and has a greater chance of error due to complexity of the calculations
• Registries, registrars and any multi-year service offering

“Architelos offered us an automated and easy to set up and use suite of services for managing some of the front office functions of a registry.  These services were a great complement to what we provide our gTLD clients.”
- Mike Salazar, CFO Minds + Machines Group Limited

Contact us for a demo or a quote!