What is Revenue Assurance?
- Revenue Assurance is an activity that is concerned with internal control over Revenues, Cost of Sales and Margins.
- Revenue Assurance is a business process to detect, probe and correct revenue leakage, to minimize opportunity loss, to minimize/ avoid costs.
- Revenue Assurance is, « Data quality and process improvement methods that improve profits, revenues and cash flows without influencing demand
There are two ways of improving profit: increase revenues and reduce costs. It is becoming a challenge to increase revenues in some sectors, so it is very important to be able to controls company costs from end-to-end.
Why Us?
We have tremendous experience in implementation of RA structure and we are advanced certified in this area.
Revenue Assurance practices will vary but in general there are five main areas of operational focus:
a. Usage – monitoring all forms of usage and reconciling with expected or normalised usage
b. Subscription – examining the services contracted and supplied
c. Reference data – assuring the integrity of the business DNA
d. Asset – ensuring business assets and related costs are properly managed/optimised
e. Receivables – timely and cost-effective management of receivables to drive cash-flow
This end-to-end perspective is sometimes referred to as ‘order-to-cash’ and Revenue Assurance practices may incorporate some or all of these elements.
Leakage is the difference between revenue supposed to be earned and the actual revenue (actual cash) realized.