If you plan to try and account for revenue recognition (RevRec) under the new accounting standards ASC 605 and ASC 606/IFRS 15 using a spreadsheet, be aware that this is going to introduce more complexity to your financial processes, not less. It’s a significant consideration. As finance contends with the new rules, interpretation of the regulatory landscape can be tricky and misstatements can have devastating consequences. But there is hope. New software applications and enhancements to existing ones are offering ways to simplify the complexities associated with the coming RevRec mandates, and in some cases making it almost as easy as accounting for fixed assets.
To achieve systematic compliance with the coming standards for RevRec, the CFO needs to be the one to lead the way in establishing the proper controls and selecting the appropriate application. Choosing the right application to automate the RevRec process can help a company efficiently and effectively manage revenue amidst today’s complexities. When you configure the system to fit your business’ RevRec requirements, NetSuite’s advanced revenue management will systematically automate compliance with industry standards. By focusing on four key areas associated with the new rules, NetSuite provides a roadmap to configure the required functionality.