Cloud finance and accounting solutions startup RightRev today announced that it has raised $5 million in new funding to accelerate product development and expand its go-to-market channels across the U.S. and globally.

Norwest Venture Partners and Salesforce Ventures led the seed round. Also investing were IDEA Fund Partners, Two Sigma, GoBig.ai and Correlation Ventures.

Founded in 2020, RightRev offers advanced revenue recognition automation software for the Salesforce AppExchange that enables Salesforce Revenue Cloud customers to optimize the performance of lead-to-revenue processes. The service is pitched as complementing Salesforce’s Quote-To-Revenue solutions by providing a true revenue subledger within the Salesforce Cloud.

The solution makes it possible to perform complex revenue equations based on recent changes to revenue recognition guidelines, such as ASC 606 and IFRS-15. In addition, the service is designed to help companies better serve customers by enabling more dynamic pricing to maintain a competitive edge. RightRev claims this is something existing systems cannot do because they are manual or do not provide the advanced capabilities to automate the accounting process.

Legacy revenue recognition processes and systems are labor-intensive, inefficient and highly prone to error, the company claims. Adding that its service modernizes accounting practices, RightRev offers a unified platform for sales operations and revenue reporting across all products and services from subscriptions to one-time sales, services, training, promotions and more.

Under the hood, the company’s cloud-based accounting solutions are built on a robust engine capable of handling the complexity of revenue recognition and compliance. All opportunities, quotes, subscriptions, orders and billing information already captured as part of a sales process is seamlessly fed into RightRev’s revenue rules engine for automated revenue recognition.

The service is hosted on Amazon Web Services Inc. and is designed to scale to volume and workload needs.

“By streamlining revenue recognition for compliance across the latest accounting requirements, RightRev completes the lead-to-revenue cycle and has built an enterprise-grade solution that extends Revenue Cloud for our customers,” Pascal Yammine, general manager of Salesforce Revenue Cloud, said in a statement.

Image: RightRev