There’s two sides to every coin. Two columns on the ledger.
It’s that traditional time of year dedicated to reflection. When was the last time you stopped to consider your place of residence on a “naughty” or “nice” list?
Well, there’s no time like the present (and there’s no end to holiday-themed plays on words, but we digress…). Sure, Good Ole’ St. Nick has his own tally, but we had something slightly different in mind. Let’s see where you and your company reside when it comes to the new revenue recognition guidance – will it be in the “debit” or the “credit” column.
You can rest comfortably knowing you are safely residing on the “nice” side of the ledger if you……
- Have successfully completed an assessment for ASC 606, “Revenue From Contracts with Customers”
- Thoroughly assessed the full impact of this new guidance through to your business workflows
- Identified performance obligations and established contract modification rules
- “Secretly” selected an adoption method (Full Retrospective or Modified Retrospective) *pssst, don’t worry, we won’t say anything if you did, and, no, that’s not naughty
- Have ensured your software vendor selection process for revenue automation is well under way
- Devote a significant amount of time consulting with your industry peers on the choices and considerations made in order to help inform your decisions
- Put in the necessary time and effort to document the changes to your revenue recognition policies and obtained approval from your auditors
But, you may have drifted into that nefarious and “naughty” side of the ledger if you….
- Find yourself, along with the majority of your finance team, confused and stymied by a majority of the items listed on the ‘nice’ list
- Truly believe the new revenue recognition standard will not impact your business at all
- Continue to do very little in the hope of another delay in the effective date
- Are making plans to go on a faraway vacation around, oh say, January 2018
- Spent the bulk of your recent time and energy shopping online instead of taking advantage of this unique opportunity to consider available solutions for revenue automation
- Do not have the attention and ‘buy-in’ of the right management representatives and decision-makers in order to devote the proper resources for a successful transition
- Are not only flailing in the requisite steps of your transition plan, but you also really haven’t done any shopping at all for your loved ones…..c’mon, people, something like that might just get you on two naughty lists!
Happy Holidays from Leeyo Software