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What is Klarity?
Klarity is automated document review software purpose-built for revenue accounting. Powered by AI, our software automates the most laborious and time consuming parts of manual document review, allowing high-growth companies to scale their revenue accounting processes without adding expensive resources or working nights and weekends.
Doesn’t our ERP and/or CRM already store all our relevant contract data for us?
Your ERP or CRM may store contracts, but the accuracy and organization of those contracts is entirely dependent on users and their adherence to internal processes. Often, documents required for revenue recognition purposes live split between the two. Within most organizations’ CRM environments, duplicate contracts, partially executed contracts and incorrect data are commonplace. Klarity automatically identifies the right documents for each deal and serves as a central repository for all of your contracts. Our system also checks that data against the data in your CRM and ERP, and flags any corrections that need to be made.
We have tools in place that leverage Optical Character Recognition (OCR) to read documents. Isn’t that good enough?
OCR provides limited value for revenue accountants because it only provides accurate results under specific circumstances. In most practical applications, OCR cannot compete with the accuracy of a human. It can only scan and duplicate data within a paper document and only comprehends printed text. Modern OCR applications have difficulty processing documents that are not crisp and clear. This creates an error-prone process that requires still manual review and correction.
We already have tools in place that offer contract lifecycle management (CLM) capabilities as an add-on. Why would I invest in an entirely new tool?
While your CLM might have some of the capabilities revenue accountants require, it was not built with their specific needs in mind. These are generalist tools meant to serve stakeholders across disparate parts of the organization. There are simultaneously too many options for revenue accountants, and not enough. Most CLM plug-ins only work with a specific vendor platform. Conversely, Klarity was built specifically for revenue accounting and is vendor agnostic, completely compatible with your existing processes regardless of the tools you currently have in place.
My team is already stretched thin as it is. How much time and upfront investment does it take before Klarity adds value?
Our goal is to minimize the amount of work your team has to do upfront. Our on-boarding process is fast and efficient. Klarity typically adds value within 4-8 weeks, from the start of the engagement to the moment you complete your first revenue checklist.
My organization has very specific requirements around our revenue checklists. Can Klarity be customized to our needs?
Yes, your revenue checklist can be fully configured within Klarity in accordance with your internal policies and needs. As you use Klarity and make accounting determinations from its annotations, the system learns your preferences and policies and applies those learnings to future reviews.
Why does my organization need Klarity?
Manual review of customer contracts for revenue accounting impact is time consuming and painful. Each deal requires highly skilled accountants to spend hours creating and populating revenue checklists with metadata, dates, fees and non-standard terms. It’s impossible to scale staff and revenue review processes fast enough to accommodate rapid success, and more documents mean more manual work for your accountants, increasing the risk of burnout and costly mistakes. Failure to review sufficient populations of customer contracts can translate into significant compliance and audit risks that fast-growing companies simply can’t afford.
Everyone these days claims to offer “automation.” What does Klarity actually automate and what will my team still have to do manually?
Klarity automates the most laborious and time consuming parts of manual document review and frees up your accountants to pursue the meaningful, impactful work they were hired and trained to do.
Klarity automatically reviews all contracts, giving your organization an exponentially more complete view from a revenue recognition perspective, and flags any contracts over your designated fiscal threshold for human review.
Your revenue recognition checklist is automatically populated for each contract that requires review. Klarity automatically scans and alerts on non-standard elements and annotates any data that you require.
Your highly trained revenue accountants are notified when human review is required. Instead of manually filtering through countless documents across multiple systems, the system points them directly to the exact part of the contract that needs review.
An embedded workflow automates communication around the entire review process, automatically pushing contracts from one level of review to the next when they are ready. Comments, questions and conclusions are all documented automatically within the system, generating a complete, detailed audit trail for your organization without any additional work.
We’ve used OCR and CLM extensively, with underwhelming results. What makes Klarity different?
Unlike OCR or CLM alone, Klarity reads, understands and extracts information from a contract exactly the way a revenue accountant would. It is trained on hundreds of thousands of contracts to automatically recognize more than 340 revenue related terms, as well as the myriad semantics around those terms.
How difficult is the set-up process? Will I need technical support to get up and running?
The implementation process is simple. We hold several meetings with key stakeholders on your accounting and IT teams to get an in-depth understanding of your existing processes. We analyze your organizational data in a sandbox environment to determine which files we want to pull, reconcile those against your current CRM/CLM and data source processes, and then move into production.
But our involvement doesn’t end there. We consistently and continually help you improve the accuracy and efficiency of the system, and work to accommodate any configurations needed as you grow.
How does Klarity help my company comply with ASC 606 / IFRS 15?
Your ASC 606 checklist is configured within your Klarity environment to automatically read contracts according to your policy. Klarity also helps your organization stay compliant by eliminating mistakes due to overwork or crunched timelines. Our system is 30 percent more accurate than a human when reading contracts at scale.
When you bring Klarity into your organization, you are also implementing a systematic best practice that has immediate value in the eyes of your auditors. Klarity allows you to review more of your contracts, and therefore more of your revenue, giving you more accurate insight into the data auditors care most about.
Is Klarity SOC 1 & SOC 2 compliant?
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