Staying current and educating yourself on the upcoming changes in the revenue recognition standards – ASC 606 and IFRS 15 – can be an ominous challenge for even the most experienced and detail-oriented finance teams. You need to carefully assess the impact specific to your business, analyze contracts on multiple levels, build the right team to tackle the job, and produce audit trails that meet critical deadlines…and these are just a few elements. Meeting these new compliance standards requires time and careful planning, but the good news it shouldn’t be a foreboding process.
Turning challenge into opportunity
A vast amount of multifarious organizations, big and small, will find the transition provides an opportunity to transform their businesses for the better. Beyond providing them with audit-passing assistance, selecting the right technology application to help with revenue recognition will allow organizations to effortlessly evolve to meet customer demands to a higher standard in the new services economy. Because it’s ‘everything-as-a-services’ these days.
Within the past few years, there’s been an overwhelming incline in the number of companies evolving their business models to provide services and complex business processes to customers on demand through the ecosystem of the Cloud. Software and infrastructure, grooming products, news, music and movies, and even food and wine are all being delivered as services with customer subscriptions creating new recurring revenue streams.
As the types of revenue models continue to multiply – product-based, subscriptions, services, SaaS, usage-based contracts and any combination thereof, not only will the right cloud system help you automate processes and build audit trails – it can centralize all your revenue streams in one system, automate revenue calculations, reduce period-end close, deliver a complete picture of your organization’s revenue – both recognized and deferred and forecast on a dime. Now cloud technology that organizations once winced at buying is a ‘must-have’. It can help you transition to the new standards and thrive at speed in the new services-based world.
But transitioning comes first
We can get as excited as we want about the silver lining in compliance, but we also want to make sure you transition pain-free and we have some insight to get you there. Join a live webinar on Friday, July 14th 11:00 A.M: Rev Rec Best Practices: How to Transition to ASC 606 & IFRS 15, hosted by FinancialForce and Deloitte National Office Accounting Service Partner; Kristin Bauer. Listen in as they discuss appraising the key issues finance teams will face as they begin implementing the new revenue recognition rules (ASC 606 / IFRS 15) and how to position your organization for a seamless adaptation. Taking part in this forum will provide you the ability to assess the impact of new standards on your organization, acclimate to the new revenue recognition standards and identify resources and ideal practices to achieve and sustain compliance.