ASC 606: Smart Companies Are Preparing Now – Here’s Why
By: Dean Dorton | June 15, 2018
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Planning is important, but taking action is critical for subscription-based companies if they want to be ready for the upcoming ASC 606 revenue allocation guidelines.
Forward-thinking subscription-based companies have it right by acting now. “But this far ahead?” you may be thinking. We say, “Yes.” Your company cannot afford to wait. Here’s why:
If companies wait too long to make changes in the way they do their tracking, internal controls, and revenue allocation processes, they can anticipate major obstacles and overwhelming workloads.
By waiting until the last minute, companies that wait will burn out their teams, run into cascading errors in tracking and billing, and ultimately, face the risk of non-compliance.
Expenses, fees, collectability, payment terms, and contracts are all affected by the changes coming for ASC 606.
Because the changes will affect revenue recognition from beginning to end, that means your current processes will change significantly, from beginning to end, as well. Also, ASC 606 compliance expectations will not only affect contracts coming in, but also current contracts for future and past revenue.
But here’s the bright side: Companies that are setting up new processes now will be in a much better position when the ASC 606 changes take effect. These companies realize that not being ready could result in productivity bottlenecking, increased costs, and errors in reporting, billing, or allocations. All of this adds up to a compromise in business success, overall.
Sage Intacct is a best-in-class financial management solution, and the first of its kind that is designed to accommodate the new ASC 606 guidelines, where subscription-based companies need the most help.
Sage Intacct supports finance teams to streamline the upcoming revenue recognition complexities with:
- Automated reporting that eliminates the headaches of more spreadsheets, helps track collectability thresholds, and flags subscriptions changes or ones coming up for renewal.
- Deep visuals into revenue and expense forecasts that reflect current guidelines against the new guidelines for more accurate projections, and enhanced views into performance.
- Billing, both in subscriptions and usage-based, to speed invoicing processes and save time when your workload is already at max capacity.
Don’t get caught off guard. Start planning now with a strong financial management solution so your teams can be armed with the right tools.
Feeling overwhelmed? Reach out! We can help make the adjustment process easier, so your company keeps growing strong even in the face of increased compliance expectations.
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