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What Professional Services Organizations (PSO’s) need to do NOW to prepare for new Revenue Recognition Standards

Posted by Tonia Steciuk on Nov 13, 2017 12:44:10 PM

So the holiday season is just around the corner. Right around the second corner in the New Year, new revenue recognition regulations will be in front of us. Honestly. Really. 2018 is lurking in the hallway and there’s no avoiding it.

When talking to professional services organizations on a daily basis, Changepoint’s Director of Product Management, Greg Davidson, has come across many who still do not have enough information or do not clearly understand if there is an impact (or what the impact is). Or even avoiding it, hoping down the road someone will make it simpler! Although the pace has picked up considerably as we approach the effective date of 1 January 2018, there are still many organizations that need to ramp up their preparation.

Greg will be co-presenting a live webinar on November 16 (9am PSF / 12pm EST / 6pm CET) along with Jeff Halden from Softrax to address the impact of the new revenue recognition standard on PSO’s.

During the webinar, he’ll talk you through the ‘Five Step Framework’ of Revenue Recognition and highlight key areas of concern for PSO’s such as the treatment of revenue and how Professional Services Automation can help you better manage revenue recognition.

Happy Holidays!

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The importance of calculating time value of money (TVM) in compliance with revenue recognition

Posted by Julia Saad on Oct 11, 2017 2:35:32 PM

The reporting deadlines imposed by the ASC 606 and IFRS 15 standards are fast approaching. That means the time for companies to get serious about implementing the new revenue recognition regulations is now. Embedded within the regulations is the concept of a significant financing component, which means for many companies, adopting the new standard and managing the time value of money will have a significant impact on their business processes.

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Analyzing ERP System Options: ERP Augmentation Software

Posted by Julia Saad on Feb 8, 2017 10:51:57 AM

The complexities of FASB and the IASB’s new revenue recognition guidelines will place heavy strain on back office processes. For quarters starting after December 15, 2017, companies will be required, under ASC 606 and IFRS 15, to perform specific accounting processes that their existing ERP software or legacy systems don’t execute well or, in some cases, don’t offer at all. Companies considering making changes to their ERP or financial system, should have a clear strategy when it comes to complying with the new revenue recognition rules. ERP systems, by their nature, tend to be a ‘mile wide and ½ inch deep’.   They may not be up to this task, nor for that matter, well suited to the new recurring types of revenue associated with the subscription economy.  This blog post is the last in a four part series and focuses on a new approach called ERP augmentation.

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Analyzing Options - Rip & Replace ERP Systems

Posted by Julia Saad on Nov 23, 2016 1:43:43 PM

With the new ASC 606 and IFRS 15 regulations, companies cannot continue with their current revenue accounting practices. When legacy ERP systems no longer support financial processes, it's time to take action and analyze the options for upgrading ERP and financial systems. Organizations with complex revenue recognition must implement a system and a process to remain compliant. This blog series examines four options to get systems up to date – invest in the existing ERP system, supplement with spreadsheets, rip and replace systems, and augment the ERP system. In this blog post, we will help companies analyze the possibility of a “Rip & Replace” of their ERP system with new software.

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Updating ERP Systems: Analyzing the use of Spreadsheets for Accounting

Posted by Julia Saad on Oct 7, 2016 9:29:31 AM

When it comes to revenue recognition and billing, ERP systems do not have the depth of functionality needed to process revenue under the new ASC 606 and IFRS 15 guidelines. Many finance professionals must use manual methods outside the ERP system to address these challenges.

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Analyzing the Options: ERP Customization

Posted by Julia Saad on Sep 9, 2016 3:26:01 PM

New business models and FASB’s new revenue recognition guidelines pose a threat to existing ERP systems. Some companies have achieved business improvement from their ERP systems. However, many companies are quickly realizing that the key benefits, once leveraged from their Enterprise Resource Planning (ERP) system, are now unavailable due to the increasing complexities stated above.

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Analyzing the Options: Updating Enterprise Resource Planning Systems

Posted by Julia Saad on Aug 31, 2016 5:06:13 PM

Enterprise Resource Planning Systems are vital to a company’s success.  However, these systems need to be maintained and enhanced to protect their value and serve a company’s changing regulatory needs in an ever changing business landscape. For instance, new business models such as IoT, recurring revenue, and changing regulations (ASC 606 and IFRS 15), all put pressure on back office processes to keep up. 

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Revenue Recognition Guidelines: The Time Is Now

Posted by Julia Saad on Jul 22, 2016 2:54:23 PM

It’s time to start preparing for the new revenue recognition guidelines. Whether you like it or not, ASC 606 / IFRS 15 changes are here and could have a significant impact on your company's reporting, systems, processes, and controls.   Companies should start planning now in order to ensure a successful transition to the new ASC 606 / IFRS 15 guidelines.

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Softrax View: ASC606 Perspectives From Our Revenue Recognition Experts

Posted by Julia Saad on Jun 24, 2016 9:00:36 AM

Organization must keep pace with new recurring revenue models while complying with tremendous change brought on by the new revenue recognition standard embodied in IFRS15 / ASC606.  Companies who want to be successful in overcoming revenue recognition challenges should be proactive and start implementing a plan for ASC 606 immediately.  Public companies must adopt the new standard for periods starting after Dec, 2017.  Private companies must adopt for periods starting after Dec, 2018.  There is a lot of work to be done.

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Weathering The Storm: ASC 606 Solutions

Posted by Julia Saad on Feb 1, 2016 4:50:17 PM

To ensure consistent application of rev rec rules, companies need to be armed with a strong internal understanding of how ASC606 applies to their particular business model. Where internal know-how comes up short, third-party consultants can provide the additional expertise – and peace of mind – when assessing the impact of revenue recognition.

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