Countdown to ASC 606— Get Compliant with Revenue Recognition Software

December 15, 2017. The date that ASC 606 goes into effect for public companies is only a few weeks away. Private companies are also facing a ticking clock when it comes to the new revenue recognition criteria. These guidelines are having—and will continue to have—significant impact on revenue recognition and expense amortization for subscription-based businesses.  Revenue recognition software automates compliance.

A few of the challenges these companies face include:

1. Rather than adding on new contracts when applying add-ons or discounts to subscriptions, you need to apply the changes to a single contract and reallocate revenue across the contract—even into closed periods.
2. In addition to deferring revenue across the contract, you also need to defer expenses. You may already be late in starting the transition if you have active contracts that extend beyond the effective dates of the new guidelines.
3. Dual reporting under both the new and old rules on the same revenue and expenses.

Sage Intacct Revenue Recognition Software simplifies compliance—automatically

Spreadsheets can’t handle all this complexity. A better way for subscription companies to manage ASC 606 is with award-winning Sage Intacct Contract and Revenue Management. Installed as part of Sage Intacct’s best-in-class cloud ERP solution, it handles the rigors of subscriptions with the complexities of associated revenue and expense recognition. By automatically reallocating expenses and revenue when a contract changes, you don’t have to jump around the system pulling reports and making manual adjustments. It just happens.

And Sage Intacct’s dual treatment capability lets the system take care of applying both sets of rules to each transaction and then shows side-by-side results with dual reporting. You’re able to see and understand the immediate impact of the new rules without extra work outside of the ERP system.

Using dual reporting to forecast automatically in the periods leading up to and beyond your transition offers you greater insight. You’ll be able to get a clear picture of how expense and revenue allocations will impact your business. This impact shows up in your financial reports and digital board book, giving current views and forecasts of key subscription business metrics including churn, customer lifetime value, committed monthly recurring revenue, cash, and customer acquisition costs.

Get control over revenue management

Get a clear picture of how expense and revenue allocations will impact your business

With Sage Intacct Contract and Revenue Management, you can configure revenue management to be audit-ready and still do business your way, from the revenue allocations you’ve been doing to the new expense allocation requirements. For example, you can:

Set expenses to either amortize over the same or different term length as the related revenue

Take control of output by tailoring dual reporting to the metrics that matter most in your business

All of this is possible without the added cost of custom code. With the control and configuration options that Sage Intacct provides, you won’t have to rely on IT for contract and revenue management that meets your needs.

Don’t waste another second!

Sage Intacct gives your subscription company the automation and control to manage contracts under both the old and new revenue recognition criteria. With the deadline to compliance fast approaching, you have no time to spare. Contact the professionals at Arxis Technology to get started today.