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Whether you’re in government or a business organization that wants the flexibility of a cloud-based solution or an on-premises system, there are things that your organization needs to know about revenue operations. This article can help you understand how to get started.

What Is Revenue Operations?

Revenue operations is the department or function responsible for a company’s revenue recognition policies and procedures that maintain accurate AP/AR reports.

A revenue operations team member decides how to allocate revenue among departments, orders, contracts, etc. The effort helps ensure a clear understanding of where revenues come from and who is entitled to them.

What Does Revenue Ops Do?

The revenue operations group is a critical part of any organization’s finance team because it maintains its AP/AR system. This is essential because an accurate, well-maintained AP/AR system provides important information for decision-making and analyzing cash flow.

How Do You Get Started?

When using RevOps in your business, you need to understand how revenue operations fits in your company’s size and function.

In larger organizations, revenue operations often has a significant number of people involved in maintaining the AP/AR system and processing revenue transactions. Most companies have some sales department to handle orders and contracts. However, many companies outsource sales order management or contract management to service providers that can deliver this service at a lower cost.

You will also need to determine if you want to have specific individuals on your team who handle revenue operations or if you want to assign revenue operations responsibilities to a larger number of people.

What Questions Should You Ask?

This list will help you get started on the process for determining how much revenue operations activity your company needs and which activities can be outsourced:

  • Will you have an entire team dedicated to Revenue Operations?
  • How much time do you want to spend maintaining transactions?
  • Do you need to hire more staff?
  • How much do your current revenue transaction costs cost if you outsource the work?

Getting started with RevOps isn’t a difficult process, but it can be complex. Use these tips to help you understand how much revenue operations work your company needs and the steps you need to take to get started.