Read the contract
Extracts term, value, ramps, renewal options, termination rights, and the deliverables — from the signed document rather than from a summary someone typed into a field.
AI agents · finance
It reads the contract, identifies the performance obligations, proposes an allocation on standalone selling price, and maintains the schedule as modifications arrive. Every judgement is proposed rather than assumed, because step four of ASC 606 is where companies actually go wrong and it is a judgement, not a calculation.
What it does
Each of these is work a person does today. The agent does them in sequence and stops at the first thing it is not confident about.
Extracts term, value, ramps, renewal options, termination rights, and the deliverables — from the signed document rather than from a summary someone typed into a field.
Proposes which deliverables are distinct performance obligations and which are bundled, with the reasoning shown. This is the step most spreadsheets skip.
Standalone selling price from observable prices where you sell separately, or a documented estimation method where you do not — never from the contract price by default.
Upgrades, downgrades, extensions, and cancellations classified as prospective or cumulative catch-up, with the determination and its basis recorded.
Over time or at a point, on the right measure of progress — approved time for services, elapsed term for subscription, consumption for usage.
Opening balance, additions, recognition, adjustments, closing — reconciling continuously, with every movement traceable to the contract that caused it.
Authority
Obligations, allocations, and schedules are prepared with reasoning attached and wait for your controller. This is the permanent default for judgement steps.
For contract shapes you have already reviewed many times — a straight annual renewal on an existing template — the run can be automated. Anything novel drops back to Level 1.
A correction to recognised revenue in a closed period is an adjusting entry a person makes, with the reasoning recorded. It is not something the agent can perform.
Nobody misapplies ASC 606 because they misunderstand the five steps. They misapply it because step two — identifying distinct performance obligations — and step four — allocating on standalone selling price — are laborious, and under time pressure both get approximated toward the contract price.
An agent is genuinely useful there, and precisely because the step is a judgement it must propose rather than decide. What it contributes is that the proposal arrives with the evidence assembled: here are the deliverables, here is why we think three are distinct, here are the observable prices we found for two of them and the estimation method for the third.
A clean twelve-month contract is straightforward. What breaks a spreadsheet is the upgrade in month five, the downgrade in month eight, and the extension agreed by email in month eleven — each of which requires deciding whether the modification is a separate contract, a prospective change, or a cumulative catch-up.
Those determinations are exactly what a diligence team tests, because they are where a company under pressure is most likely to have been optimistic. Recording the determination and its basis at the time, rather than reconstructing it eighteen months later, is most of what makes a revenue schedule defensible.
It does not decide your accounting policy. Whether a particular implementation service is distinct from the subscription is a position your auditors will have a view on, and it should be set once, deliberately, and applied consistently. The agent applies your policy and flags contracts that do not fit it — which is the useful behaviour, rather than quietly interpreting each one on its own.
Questions
Send your contract types and a billing export. We will tell you what will not survive review.