The Rules Are Changing. Revenue is the key indicator of your company’s financial performance and health. That’s not news. What is news? The accounting rules you must follow to recognize and report on that revenue are about to change. ASC 606 creates a major shift in how your business handles its accounting—particularly if you have a subscription-based business that derives revenue from contracts with customers.
What’s the big deal? For starters, the impact of the change extends beyond a mere tweak to your accounting methods. It necessitates changes to your tracking, processes, and internal controls. The purpose of this guide is to highlight the basics of ASC 606, what it means for your business, and the risks of not taking action.
For a more detailed overview of how to plan your path to compliance, be sure to read Regulation Roulette: Part II: Six rules for ASC 606 readiness. Sign up for a free instant membership to download the ebook as well as gain access to our entire resource library.