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September 21, 2022
Streamlining Contract Review Through A Risk Based Approach
Case Study
Automating the Review of Contracts
for ASC 606 RevRec
For a mid-size company with significant growth potential, ASC 606 compliance can be costly and challenging. For Optimizely, this meant an ever increasing number of sales contracts and order forms that needed to be appropriately reviewed to recognize revenue under ASC 606 guidelines.
Optimizely struggled with a lengthy, manual contract review process resulting in organizational inefficiencies as they lacked a centralized workflow that could help ensure completeness in the review process and compliance with accounting standards.
Automating the Review of Contracts
for ASC 606 RevRec
For a mid-size company with significant growth potential, ASC 606 compliance can be costly and challenging. For Optimizely, this meant an ever increasing number of sales contracts and order forms that needed to be appropriately reviewed to recognize revenue under ASC 606 guidelines.
Optimizely struggled with a lengthy, manual contract review process resulting in organizational inefficiencies as they lacked a centralized workflow that could help ensure completeness in the review process and compliance with accounting standards.
Automating the Review of Contracts
for ASC 606 RevRec
For a mid-size company with significant growth potential, ASC 606 compliance can be costly and challenging. For Optimizely, this meant an ever increasing number of sales contracts and order forms that needed to be appropriately reviewed to recognize revenue under ASC 606 guidelines.
Optimizely struggled with a lengthy, manual contract review process resulting in organizational inefficiencies as they lacked a centralized workflow that could help ensure completeness in the review process and compliance with accounting standards.
Case study in numbers
300+
contracts reviewed in each quarter
85%
time savings in comparison to manual process
3x
faster than manual contract review
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Why customers choose Klarity
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The Challenge: ASC 606 Compliance
For a mid-size company with significant growth potential, ASC 606 compliance can be costly and challenging. For Optimizely, this meant an ever increasing number of sales contracts and order forms that needed to be appropriately reviewed to recognize revenue under ASC 606 guidelines.
Optimizely struggled with a lengthy, manual contract review process resulting in organizational inefficiencies as they lacked a centralized workflow that could help ensure completeness in the review process and compliance with accounting standards.
The Solution: Automated Checklist Population
Optimizely integrated Klarity’s contract review software into their workflow. Klarity automatically pulls contracts from Optimizely’s contract management system, removing the need for manual data transfer. Through automatically identifying contracts with non-standard terms, Klarity better identifies the population of contracts for Optimizely to review. Klarity automatically populates Optimizely’s custom non-standard terms checklist for each contract by automatically extracting all information and metadata.
Ultimately, this streamlines the review process for Optimizely’s revenue accountants, ensures that each contract goes through the requisite review steps, and helps to ensure compliance with ASC 606 revenue recognition guidelines. With Klarity, Optimizely is now able to review revenue contracts 3x as fast as before and hold greater confidence in their internal controls.
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We're a lean finance department, so our revenue team needs to be super efficient at what they do. We're fortunate to have brought on Klarity to help streamline our revenue processes.
Sean Deorsey
Chief Financial Officer
Why Customers Love It
“We are extremely excited to implement this Generative AI Technology for our customers. Klarity Architect demonstrates the superior analysis capabilities of AI using Multi Modal analysis and LLMs in real life scenarios. We believe in the impactful transformative value of AI and look forward to delivering tangible results to our customers by utilizing Klarity Architect.”
— Ahmed Zaidi, CEO, Accelirate
Find out how Accelirate cut documentation time by 67% and scaled their operations →
Life at Klarity
Collaboration
Optimizely engaged Klarity to integrate its workflow management software and artificial intelligence capabilities into their sales contract review process.
With Klarity, their contract review process is significantly more efficient.
- Klarity’s software automatically pulls sales contracts from their contract management system before closing the books each month.
- Klarity’s artificial intelligence automatically extracts all metadata and clauses from the contract and uses this information to pre-populate Optimizely’s non-standard terms checklist.
- Klarity’s workflow management tools ensure completeness in the review process as it tracks and securely stores all documentation and comments corresponding to each item on the non-standard terms checklist for each contract.
Klarity automates one of the most time-consuming parts of my job and saves me 85% of my time compared to my previous manual process.
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Barrett Wilkowski
Revenue Recognition Manager
Results
Klarity’s platform facilitated the review of 342 contracts during a quarter, allowing the revenue recognition manager to review contracts 3x as fast as before.
