Revenue Accounting Solutions

Reach out to revenue accounting aces to hold down the fort, streamline your process, make sure you’re doing it right and help others in the company get on board.

Understanding revenue accounting

Revenue figures are often looked at with a skeptical eye by stakeholders, auditors and regulators, and it’s not hard to understand why: Figuring out revenue for fast-moving, complex companies is not a clear-cut endeavor, and specialized skills and expertise are required to do the job right. Timing and the details of contracts matter. As does consistency – different aspects of the company view revenue in different ways.

ASC 606, the revenue recognition accounting standard

The Financial Accounting Standards Board upended an already complicated endeavor when it issued “Revenue from Contracts with Customers” (ASC 606), which did away with industry-specific guidance for recognizing revenue. In some ways, the new standard simplified things, but recognizing revenue properly will never be easy. ASC 606 requires companies across industries to follow one standard using general principles (vs. bright line rules) that are applicable to any company that enters into contracts with customers, including long-term contracts and licenses.

What do revenue accountants do?

Revenue accountants not only possess deep technical expertise; they also have the ability to problem-solve, take a holistic view of business needs and get others around them (including non-accountants) to understand revenue recognition. They are subject matter experts in ASC 606, revenue documents, and contracts. They use their knowledge to draft technical memos, train and mentor others in the finance team, and ensure compliance with ASC 606.

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