60% of software companies running NetSuite haven’t started on the path to ASC 606 compliance yet. There’s still time to act, but you’ll need to act quickly.
If you’re a public company or private but considering IPO in 2017 or 2018, you should have already implemented the new standards or be looking to quickly resolve in the short term. Contact our Accounting and NetSuite teams today. Public companies – Jan. 1, 2018. Private companies – Jan. 1, 2019.
NetSuite’s Advanced Revenue Management solution helps companies comply with accounting standards including ASC 606, and report financial results in a timely manner. The solution automates revenue forecasting, allocation, recognition, reclassification, and auditing through a rule-based event handling framework. Whether your business conducts sales transactions that consist of products or services, or both, and, whether these transactions occur at a single point in time or across different milestones, NetSuite’s revenue recognition solution will help you schedule, calculate and present revenue on your financial statements accurately.
RSM is an NetSuite authorized partner to implement Advanced Revenue Management (ARM) and multi-book. If you’re considering a third party to come in and help with the ARM and ASC 606 implementation, RSM brings a unique and holistic perspective to the process with having both certified and authorized NetSuite consultants as well as the technical accounting expertise to help you navigate the ASC 606 landscape.
Watch RSM’s five part video series walking through the details and model of the new revenue recognition standards with ASC 606. If you’re not using NetSuite today and are finding difficulty adopting the new accounting standards with your current ERP system, RSM can help you evaluate NetSuite or other mid market ERP systems to best suit your company.
Five Step Model for Revenue Recognition for topic ASC 606
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations
Step 5: Recognize revenue when the entity satisfies a performance obligation.
By: Brent Knowles