- What is ASC 606 (IFRS 15)
- What is Revenue Recognition and why sales and finance should care
- How to manage amortization
- How ASC 606 will affect your accounting and commissions practices
And that's just a few of the talking points in the blog. Reading through this detailed breakdown could give the impression that Revenue Recognition is more a burden to contend with rather than an opportunity to leverage. Sure, the ASC 606 will demand changes for compliance that will disrupt your processes. But mandatory disruption can be a good thing, allowing your organization to reexamine and optimize inefficient accounting processes.
With that said, below are 3 ways to leverage ASC 606 as an opportunity for long-term growth.
1. Capture the Data, Make Better Decisions
Accurate, high-quality data is critical to ensuring compliance. With the right systems in place, companies will be privy to an unprecedented amount of data. Since a waterwall amortization schedule will be required for every line item, for each employee on variable pay, and on every contract companies will be creating an incredible amount of information. This is a blessing in disguise as it will provide sales and finance leaders with more data to make better decisions. That is if you're not managing commissions manually.
2. ASC 606 is a Great Reason to Automate Commissions
If you're still managing commissions manually, the compliance needs of ASC 606 are a perfect reason to automate. Not only will your compensation admins and sales ops managers thank you for it, but finance can rest easy knowing that the chance of costly errors is significantly reduced. Successful finance teams realize that by automating processes based on real and predictive analytics leads to more profitable decisions for the entire organization.