risk-management-software

Problems We Solve

Financial Compliance and Risk Management 

In channel-based environments, risk comes in many forms. One major area that always must be governed is compliance with financial and regulatory mandates. As more companies move from traditional, sell-in models of revenue recognition to sell-through models in conjunction with channel partners, the risks of noncompliance are escalating.

Cover all of your bases

The Sarbanes-Oxley (SOX) Act and other compliance initiatives require a substantial investment of time and money for companies to make sure that their channel-based operations conform to mandates and reduce risk exposure.

With an increasingly large percentage of the data and processes that support compliance now residing with channel partners, companies have higher risk exposure due to discontinuities in the audit trails and evidence to support all of their financial actions.

Relying on manual tracking such as offline spreadsheets, email trails, faxes and paper documentation is not only inefficient, but also a recipe for noncompliance and potential sanctions.

“We selected Entomo because it provided a comprehensive solution that was quickly customized to our specific needs.”

- Tom Woody, Director of Business ERP, WatchGuard



Entomo's financial compliance and risk management software

Entomo overcomes these risks through a fully automated, single system of truth for capturing, aggregating, normalizing and validating the relevant data streams from partners, and integrating all of the data within existing business systems.

Reduce your financial compliance risk with these Entomo SmartHub modules:

  1. Channel Data Management (CDM) Suite
    Your first step to better data. Realtime POS and inventory data are captured, cleansed, normalized and enriched for consistency and "one system of truth."
  2. Transaction Valuation
    Assign specific cost to specific product sold. POS transactions are verified and valued based on FIFO, price book, reported cost or other costing method to gain a true, consistent measure of sell-through cost and margin.Incorrect valuation can erroneously inflate revenues or commissions and make it nearly impossible to get an accurate channel inventory picture.
  3. SISO (Sales-In-Sales-Out) Inventory Reconciliation
    Simple inventory reporting by channel partners is an important first step, but not sufficient. Inventory levels are independently validated, starting with transaction valuation. SISO inventory reconciliation is then performed to validate the correct beginning and ending inventory levels in the channel. SmartHub maintains perpetual (roll-forward) inventory and appropriate valuation and currency conversions.
  4. Sell-Through Revenue Recognition
    All channel activities seamlessly feed the Sell-Through-Revenue-Recognition module to allow calculation of revenues net of back-end program expenses. This ensures the correct G/L journal entries are booked for incentives that are expenses (e.g., co-op funds) and those that are reductions in revenue (e.g., Ship-and-Debit).

Key benefits include:

  • Establishment of auditable processes
  • Audit penalty and fine avoidance
  • Recognition of revenue on sell-out
  • Reduced gray market activity
  • Ensure compliance with channel partner contracts and licensing agreements
  • Compliance with SEC and FASB (Financial Accounting Standards Board) requirements

Entomo’s cloud-based system is optimized for efficient capture of front-line raw data across the diverse range of partner environments, minimizing any changes to their systems or procedures. At the same time, it seamlessly collects the information needed for compliance and risk management.

Our cloud solution also eliminates the high costs that companies would face for continually updating their in-house, ad hoc systems to meet changing compliance requirements. This enables financial managers to keep their focus where it should be: on the actual risks and decisions needed to stay ahead of compliance requirements. 

Revenue Management Data Sheet  Learn about our solutions for inventory reconciliation, incentive management  and financial activities Download Now
Watchguard Case Study  Learn how Entomo's solution created an audit-ready trail and SOX compliance Download Now