CEO Perspectives: ASC 606 and New Beginnings
It’s hard to believe, but it’s already March. With the Daylight Saving Time change we lost an hour and now it is the beginning of Spring. But we still lost an hour.
How do you get your job done with one less hour this month? At InnoVergent we constantly strive to help you work smarter, as documented in our new Vision Statement: “provide customer success by enabling outstanding solutions with best practices and personal experiences.”
Another challenge to consider is getting ready to face the changes due to the New Revenue Recognition Standards ASC 606, which will affect financial reporting and will require extra work from all departments across companies.
Here are some tips to consider as you prepare for this change:
Challenge #1
As departments adopt these new rules at the same time, it might be challenging to have a clear understanding of the way your entire organization will be impacted.
Solution
Auditors and finance professionals are your best friends. Make sure to begin conversations with them early and try to understand how your industry will be affected.
Challenge #2
Because all departments within your organization will be involved, it might be hard to have a 360-degree view of tasks and deadlines.
Solution
Take advantage of available tools and platforms that help you automate data gathering and integrate information across departments.
Challenge #3
Communicating to investors–both public and private–what the changes mean and how to evaluate the business impact moving forward.
Solution
Develop reporting processes and strategies that will help shareholders understand all impacts to the business.
If you analyze these challenges and solutions, you will see that the key aspect is timing and to avoid waiting until the last minute. Keep in mind that now is the time for businesses to begin planning for this significant change.
To learn more about the ASC 606 download the white paper or contact us at info@innovergent.com and find out how InnoVergent can help you implement tools that will help you navigate the process mellifluously.
