November 30, 2016
Is Your Company Unprepared for the Upcoming Revenue Recognition Accounting Standards?
Posted by Armanino Financial Advisory Team
A new survey of top finance executives at U.S.-based companies released by Intacct, the customer satisfaction leader in cloud ERP software, reveals that finance departments are behind in preparing to transition to the new ASC 606 revenue recognition guidelines. Challenges lie ahead for companies—from understanding how the new guidelines will impact existing contracts, to adjusting the way revenue is recognized when customers renew or upgrade contracts. It’s a big deal.
What’s the Deal with ASC 606?
ASC 606 is a new revenue recognition guideline from the Financial Accounting Standards Board (FASB) requiring companies to identify performance obligations in all customer contracts, and approach revenue recognition on a contract basis, rather than a transaction basis. The new guidelines go into effect for public companies in December 2017, and for private companies in December of 2018, but now is the time to get ready.
The Intacct ASC 606 Readiness Study found that 40 percent of finance professionals say that preparing for and implementing the new accounting standards will be a painful experience.
Can You Get It Together in Time?
Intacct surveyed finance executives at midsized U.S companied and found that only 16% of respondents believe their existing core accounting software is currently equipped to handle the new requirements coming with ASC 606. While most financial software vendors have only announced basic conceptual approaches about how they will help their clients address the new guidelines, Intacct has taken a proactive role to bring a comprehensive set of applications to the marketplace. In spring 2016, Intacct launched the industry’s first automated solution to help companies navigate the complexities created by ASC 606.
Need Help Now? Get Our Revenue Recognition Toolkit
- Read the white paper. Get the full story about the legislation, and understand what’s happening and when. Download Armanino’s white paper today!
- Watch the webinar. Need a quick tutorial for you and your team? Watch our webinar, and hear Armanino experts Ricardo Martinez, CPA, and John Dunican outline a straightforward way to ensure your Board, executive and management team members understand how the new guidelines impact the way you do business. Click here to watch it.
- View the revenue recognition video. Watch our video to get all the basics and deadlines in an easy to understand format.
- Check out the Revenue Recognition Summit press release. Download our press release to learn how Richard Martinez, CPA, and John Dunican presented a straightforward path to compliance for your Board, executive and management team at the Revenue Recognition Summit.
Armanino’s Financial Advisory blog is your source for thought leadership around cloud ERP and accounting solutions and integrations. Supported by the Cloud Accounting Institute and numerous experts in cloud, finance, reporting, integration, compliance, and technology, Armanino’s Financial Advisory blog features must-read content on what’s happening in the finance industry, case studies, white papers, and much more.