Companies have made valiant efforts in preparation of the new ASC 606 implementation, but still discovered a number of ambiguities in their approach. They also detected limitations in their financial systems’ ability to process the required information.
If this describes your company, it’s time to consider automating the ASC 606 process and make it a component of your normal operations. It’s long past time to retire spreadsheets and other manual workarounds.
Five steps to establish an efficient process:
Take Stock – Identify how automation can prevent disruption in financial reporting.
Define Policies & Controls – list roles and responsibilities, and regularly perform nonstandard transaction assessments.
Manage oversight - navigate the facts and circumstances of each case so that judgments in each transaction.
Create a process for non-standard transactions – Establish and identify procedures to monitor one-off transactions and determine if they require automation and control.
Make progress – Benchmark your automation process against industry peers and set improve goals to reduce financial surprises.
Accurate data and reliable analysis are essential for organizations of any size, and is critical to your business’ performance. Thus, revenue systems and automation are essential. With technology making rapid advancements almost overnight, companies that don’t automate risk lagging behind their competitors
The experts at Astute have been working diligently with key stakeholders for years to clearly define measurable objectives and design a healthy financial automation system.
Our technology & digital offerings include:
• System selection and implementation
• System integration and optimization
• Data analytics and master data management
Automating Revenue Recognition
Current revenue recognition standards revolve around the completion of performance objectives, which are typically delineated in contracts or service agreements. They are often standardized – almost like cookie cutters. Regardless, revenue recognition schedules must still be created for each contract, which consumes massive amounts of time.
Let the experts as Astute assist you in ASC 606 implementation.
Their excellent Technical Accounting and Audit knowledge helped us clean up some of the major areas of financial statements and assisted us in getting prepared for the audit.