Revenue Recognition Software for Multi-Entity Accounting

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  • Automated, GAAP-compliant revenue recognition in Gravity Software

    • Automated, GAAP-compliant revenue recognition in Gravity Software

    Gravity Software's revenue recognition icon.

    Gravity Software is cloud-based multi-entity accounting software built on the Microsoft Power Platform. Designed for organizations operating multiple legal entities, subsidiaries, or divisions, Gravity automates revenue recognition while delivering consolidated reporting, intercompany automation, and real-time financial visibility.

    As accounting standards place greater emphasis on recording the right revenue in the right period across all industries, finance leaders need systems that enforce consistency, compliance, and automation. Gravity’s Revenue Recognition module was built specifically to meet that need.

    If you're evaluating revenue recognition software or the best accounting software for multiple companies, Gravity helps finance teams reduce manual work, improve audit readiness, and accelerate month-end close.

  • Why revenue recognition is critical for multi-entity organizations

    • Why revenue recognition is critical for multi-entity organizations

    Gravity Software's multi-entity accounting icon.

    Revenue recognition directly impacts:

    • Financial statement accuracy
    • GAAP and FASB compliance
    • Audit outcomes
    • Consolidated reporting
    • Executive decision-making

    For CFOs, controllers, and finance teams managing multiple subsidiaries, manual spreadsheets and disconnected systems create risk.

    Gravity eliminates that risk by automating deferral schedules, period-based journal entries, and entity-level recognition inside a centralized accounting platform.

  • Built on two core components: Deferral schedules and recognition automation

    • Built on two core components: Deferral schedules and recognition automation

    Gravity Software icon showing two interlocking gears, symbolizing the two revenue recognition components of deferral schedules and recognition automation.

    Gravity’s revenue recognition module is built around two foundational components:

    1. Deferral Schedules

    Deferral schedules contain all the information needed to recognize revenue by period. Each schedule includes:

    • Header-level contract or invoice details

    • Line items that generate journal entries

    • Period breakdown (monthly, quarterly, annually)

    • Recognition dates (first day or last day of period)

    • Equal or policy-driven allocation methods

    Schedules can be:

    • Created manually (with automated calculation of line items) 

    • Automatically generated from posted invoices 

    This flexibility supports organizations with diverse revenue models, including memberships, subscriptions, services, and training.

    2. Automated Recognition Templates

    Recognition templates drive automation.

    Templates define:

    • Recognition frequency (monthly, quarterly, annual) 

    • Number of periods (e.g., 12 months for annual dues) 

    • Allocation method (equal per period or policy-based) 

    • Posting timing (first day vs. last day of period) 

    • Recognition date source (invoice date or service/event date) 

    Templates are tied directly to inventory or line items, ensuring revenue recognition rules are applied consistently every time an invoice is posted.

    This structure removes guesswork and enforces accounting policy automatically.

  • How revenue recognition works in Gravity

    • How revenue recognition works in Gravity

    Gravity Software's logo.

    Gravity simplifies what is often a complex, spreadsheet-heavy process.

    Step 1: Configure Templates

    Create revenue recognition templates aligned with company policy.

    Example:

    • Annual membership dues → 12 months, equal allocation
    • Training class → Recognized on class date only

    Step 2: Tie Templates to Products or Services

    Each inventory item can have a template attached.

    For example:

    • $1,200 annual membership → Automatically spread over 12 months

    Step 3: Post the Invoice

    When an invoice is posted:

    • Deferral schedules are automatically created

    • Revenue is allocated according to the template rules

    • Multiple line items can generate different recognition patterns on the same invoice

    Example:
    An invoice with annual dues and training will generate:

    • 12 months of membership revenue
    • A single future recognition entry for training on the class date

    Step 4: Post Monthly Recognition

    Finance simply posts the monthly recognition batch.

    Gravity automatically generates the journal entries tied to each deferral schedule and period. No spreadsheets. No manual journal tracking. No reconciliation surprises.

    Watch our video below to see Gravity's Revenue Recognition feature in action.

  • Why finance leaders choose Gravity for multi-entity revenue recognition

    • Why finance leaders choose Gravity for multi-entity revenue recognition

    Gravity Software icon depicting financial leader choosing a multi-entity revenue recognition solution.

    Managing revenue recognition across multiple legal entities is complex. Different subsidiaries, currencies, books, and reporting requirements create risk — especially when finance teams rely on spreadsheets or disconnected systems.

    Gravity Software is purpose-built as multi-entity accounting software with integrated revenue recognition automation, giving organizations a single source of truth across all companies.

    Organizations evaluating revenue recognition software or the best accounting software for multiple companies choose Gravity because it delivers:

    Centralized Control Across Entities

    • Single-database visibility across subsidiaries
    • No multiple logins or disconnected ledgers
    • Entity-specific deferral schedules
    • Automated intercompany transaction handling
    • Multi-currency and multi-book support

    Revenue is recognized accurately at the entity level and rolled up seamlessly for consolidated financial statements.

    GAAP-Compliant Revenue Automation

    • Automated revenue deferrals tied to invoices
    • Period-based recognition aligned with company policy
    • Reduced audit risk and compliance exposure
    • Traceable schedules for audit readiness
    • Elimination of spreadsheet-driven reconciliations

    Gravity ensures revenue is recorded in the correct period — every time.

    Real-Time Consolidated Financial Management

    Accurate, automated revenue recognition strengthens investor confidence, improves lender reporting, and prevents costly restatements.

    If your organization is managing deferred revenue schedules in spreadsheets — or reconciling revenue across separate systems — it may be time for a modern, integrated solution.

    Gravity combines revenue recognition software and multi-entity accounting in one unified platform designed to scale with your growth.

    Learn more about our full multi-entity revenue recognition capabilities by scheduling a demo today.

  • Proven results from Gravity customers

    • Proven results from Gravity customers

    Jeremy James, Accounting Manager, Branson Airports

    Jeremy James, Accounting Manager of Branson Airports, shares his experience using Gravity Software's Revenue Recognition feature.

    “Gravity Software is perfect for midsize or growing businesses. A current accounting software that keeps up with business and technology.”

    Browse More Customer Stories
  • Revenue recognition resources to power your business

    • Revenue recognition resources to power your business

    G2 'Users Love Us' badge showcasing Gravity Software's high customer satisfaction rating of 4.0 stars or higher.

    Explore our library of resources to learn more about Gravity Software’s revenue recognition capabilities, multi-entity accounting features, and best practices for GAAP-compliant financial management.

    Revenue Recognition Mistakes
    Check out these common revenue recognition mistakes and learn how Gravity can help to fix them.
    Best Practices for Multi-Entity Accounting
    Discover essential best practices for managing financial operations across multiple entities to improve efficiency and reduce complexity.
    Boost Productivity with Revenue Recognition
    Here are the top revenue recognition challenges and how the right automation can make them a thing of the past.
    Multi-Entity Accounting
    Explore the limitations of QuickBooks for multi-entity businesses and how Gravity conquers them.
    Revenue Recognition for Real Estate Companies
    Learn how Gravity's revenue recognition makes simplified accounting a reality for real estate businesses just like yours.
    Revenue recognition for training companies
    Take a look at the numerous benefits of leveraging revenue recognition for training companies.
    Revenue Recognition for Technology Companies
    Find out why revenue recognition is perfect for technology companies with annual subscriptions or maintenance contracts.
    Accounting Software for Multiple Entities
    The right software can make all the difference for your multi-entity accounting team — here's why.
    Gravity Multi-Entity Accounting Highlights
    Watch a 7-minute overview to see how Gravity's multi-entity accounting software empowers business leaders.
  • Frequently asked questions about revenue recognition

    • Frequently asked questions about revenue recognition

    Salesperson offering personalized assistance for prospective buyers of Gravity Software's revenue recognition feature..

    Choosing the right revenue recognition software is critical for maintaining GAAP compliance, improving audit readiness, and ensuring accurate consolidated financial reporting — especially in a multi-entity accounting environment. Below are answers to common questions from CFOs, controllers, and finance teams evaluating automated revenue recognition within accounting software for multiple companies.

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    What is revenue recognition software?

    Revenue recognition software automates the process of recording revenue in the correct accounting period according to GAAP and FASB standards. Instead of manually tracking deferred revenue in spreadsheets, the software generates deferral schedules and automatically posts journal entries based on predefined recognition rules.

    Gravity Software provides automated revenue recognition within its multi-entity accounting software platform, ensuring accurate, compliant financial reporting across subsidiaries.

    How does Gravity automate revenue recognition?

    Gravity automates revenue recognition through configurable recognition templates and deferral schedules.

    When an invoice is posted:

    • A deferral schedule is automatically created
    • Revenue is allocated by period (monthly, quarterly, annually)
    • Journal entries are generated automatically
    • Monthly recognition batches are posted with a single action

    Templates can be tied to products, subscriptions, memberships, services, or training events, ensuring revenue follows company policy without manual intervention.

    Is Gravity revenue recognition GAAP compliant?

    Yes. Gravity supports GAAP-compliant revenue recognition by:

    • Matching revenue and related costs to the appropriate accounting period
    • Allowing policy-based allocation methods (equal or customized)
    • Supporting invoice-date or service-date recognition
    • Creating traceable, audit-ready schedules

    This helps reduce compliance risk and audit friction for finance teams.

    Can Gravity handle revenue recognition across multiple legal entities?

    Yes. Gravity is built as multi-entity accounting software, allowing organizations to:

    • Create entity-specific deferral schedules
    • Recognize revenue independently at each subsidiary
    • Consolidate results automatically for group reporting
    • Manage intercompany transactions seamlessly

    Revenue is recognized correctly at the entity level and rolled up into consolidated financial statements in real time.

    How does revenue recognition work with subscription or membership billing?

    Gravity allows recognition templates to be tied directly to inventory items or billing line items.

    For example:

    • Annual membership dues can be automatically spread over 12 months
    • Multi-year contracts can be broken into defined recognition periods
    • One-time services can be recognized on a specific future date

    This makes Gravity ideal for subscription-based businesses, SaaS companies, associations, and service organizations.

    Does Gravity eliminate spreadsheet-based deferred revenue tracking?

    Yes. Gravity replaces manual deferred revenue spreadsheets with:

    This reduces reconciliation errors, shortens close cycles, and improves internal controls.

    How does revenue recognition impact consolidated financial reporting?

    Accurate revenue recognition ensures that each subsidiary reports revenue in the proper period. Gravity then:

    This creates reliable consolidated financial statements for executives, investors, and lenders.

    Who should use Gravity's revenue recognition software?

    Gravity is ideal for organizations that:

    • Operate multiple legal entities
    • Manage deferred revenue or subscription billing
    • Require GAAP-compliant revenue automation
    • Need consolidated financial reporting
    • Want accounting software for multiple companies in one system

    It is especially beneficial for private equity–backed firms, growing mid-market organizations, franchises, SaaS companies, and professional services firms.

    How does Gravity compare to standalone revenue recognition tools?

    Unlike standalone tools, Gravity integrates revenue recognition directly within a full multi-entity cloud accounting platform built on the Microsoft Power Platform.

    This means:

    • No third-party integrations required
    • Real-time synchronization with the general ledger
    • Unified reporting across entities
    • End-to-end financial visibility

    Revenue recognition is not an add-on workaround — it is embedded within the accounting system.

    See what revenue recognition could be with Gravity Software.

    If you're evaluating revenue recognition software or the best accounting software for multiple companies, the best way to understand the impact is to see it live. 

    Schedule a demo today to see how automated revenue recognition works across multiple entities in a live Gravity environment. 

    schedule a demo with Gravity Software