Cloud ERP software provider Intacct announced the launch of Intacct Contract and Revenue Management, an automated solution to help companies navigate complexities around the upcoming ASC 606 and IFRS 15 revenue recognition guidelines.
The new module fully addresses the upcoming rules for revenue reallocation and expense amortization using automation, and with out-of-the-box functionality.
ACS 606 and IFRS 15 revenue guidelines from the Federal Accounting Standards Board and International Accounting Standards Board, going into effect for public companies in 2018 and for private companies 2019, will require companies to reallocate revenue each time a customer contract changes and defer expense recognition to align with the contract’s delivery. Contact add-ons and renewals must be integrated into a single contract, triggering reallocations across both past and future periods, and causing continuous revisions to revenue allocations and expense alignment. As most companies have multi-year customer contracts, they will need to adjust for the new guidelines ahead of the start date.
In a recent survey of 320 finance executives at mid-sized companies, Intacct found that less than 10 percent of respondents had started to take steps to address the new standards and 47 percent said implementing the new requirements into their financial system or revenue recognition spreadsheets would be their biggest challenge in the process.
Designed to make companies audit-ready while delivering continuous insights, Intacct Contract and Revenue Management enables finance teams to:
- Automate complex processes for addressing all new rules for revenue reallocation and expense amortization
- Disclose the impact of changes with automated dual treatment at the transaction level
- Transition to the new rules with automated dual reporting
- See the impact of the new rules on the company’s future results with revenue and expense forecast based on both current and new guidelines
- Automate complex subscription billing, including usage-based billing, with full integration to revenue recognition
- Track according to a business’s operational model using instant insights into SaaS metrics
“Our focus on finance enables Intacct to move faster than our competitors and deliver a more comprehensive solution to manage the impending changes to the revenue recognition guidelines,” stated Dan Miller, vice president of product management for Intacct. “It will be near impossible to do all of the revenue reallocation manually due to the sheer volume of contracts and adjustments that will be required for subscription-based businesses. With Intacct Contract and Revenue Management, companies will be able to easily and seamlessly manage their transition to the new accounting standards without using complex work-arounds, bolt-on solutions, scripting that may break over time, or hiring a significant amount of additional accountants.”
More information and a video on Intacct Contract and Revenue Management are available here.
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