On Thursday, Jan 17th Zuora invited Bay Area controllers, revenue directors, and CFO’s to a talk with Effectus Group on the specific things companies need to be aware of as they adopt ASC 606 this year.
With many industries seeing their business models disrupted by subscriptions, usage, or other monetization methods, ASC 606 standardizes revenue recognition as a principle based approach to ensure comparability of financial statements across sectors. The transition has not been an easy one, so most companies seek advice and program management from subject matter experts.
Effectus Group is a powerful voice in the San Francisco Bay Area on issues of technical accounting and financial operations. The accounting firm has spent the past few years helping public companies interpret and implement ASC 606. When companies have complex revenue, are eyeing an IPO, or reaching enterprise scale, Effectus Group will team with Zuora RevPro to automate the revenue recognition process. Zuora RevPro is the world’s leading revenue recognition automation system.
At the training, Zuora’s own Aditya Vadrevu, Practice Director joined Effectus Group’s Clinton Sands to discuss how ASC 606 increases the likelihood of errors for companies reliant on spreadsheets. On the other side of the automation journey, revenue departments that have successfully automated are able to forecast revenue, support new business models, and become a strategic partner to the business (rather than a bottleneck).
For most companies, the reporting and disclosure requirements will be a struggle to meet. Most companies should choose to send all of their data to their revenue recognition automation solution to ensure that they can easily report disaggregated revenue. This undertaking requires careful consideration of data-flow through the entire quote-to-revenue process.
Zuora RevPro and Effectus Group plan to take this show on the road with another training for an audience in Los Angeles in March. To register click here: LA ASC 606 Adoption Workshop with Effectus Group.