Automating certain tasks takes the guess work out of them and saves companies time and money, but this is easier said than done, right? We hear you! There are steps you can take now to lay the foundation for automating a critical part of your business: revenue accounting.
There is no better time to pay special attention to this area of your business, as the FASB has issued ASC 606, Revenue from Contracts with Customers, that will be in effect at the beginning of 2017.
So, let’s begin laying that foundation…
1. Where are you going? It’s helpful to step back and look at the overall strategy of your business and operations to see if you plan to grow in the next 5 years or maintain the growth you’ve already seen. If you plan to expand in a different area, try to understand the effect a new contract type may have on your revenue.
2. Define policies and procedures: Most policies lack the amount of detail that makes things clearer for employees. Instead, it causes confusion and employees ignore them rather than implement them into their daily processes. Making policies and procedures clearer will set the stage for more streamlined accounting management, especially preparing you for the next step.
3. Fit a solution to your business, not the other way around. Once you’ve identified your strategy and internal policies and procedures, you’re equipped to start finding an accounting solution that will fit and grow with your business. Instead of focusing your selection on cost or specific technologies, take a look more at your holistic needs as a business. Sure, you need the solution to be flexible, but make sure it also helps with scheduling, compliance and forecasting.
ASC 606, Revenue from Contracts with Customers, suggests a need for more automation, especially during the transition year. If you’re still manually keeping track of deferred revenue, you may be putting the integrity of your data at risk.
Automate revenue accounting by laying the foundation with an integrated and robust financial management solution like Intacct. BTerrell Group is a long-standing Intacct Partner, and we know ASC 606 can be confusing. It’s our job to be the experts and help companies like yours eliminate labor-intensive and stressful revenue recognition. Contact us at 214-647-2611 to see how automating revenue accounting can help you.
By BTerrell Group, Texas- based Intacct PartnerKeywords: FASB accounting standards, Revenue Recognition Accounting Standard, financial statement management, revenue recognition, contract management, Enterprise Resource Planning solutions, ERP software, Texas Intacct Partner, Automate revenue accounting