The new ASC 606 revenue recognition standard went into effect at the start of 2018 for public companies and the start of 2019 for private companies. ASC 606 has far-reaching consequences for software and SaaS companies, particularly for those that have revenue tied to contracts. And there is significant risk in delaying implementation.
For all software and SaaS organizations, the impact of the new ASC 606 standard extends well beyond basic accounting policy. Ensuring your business complies with ASC 606 likely requires significant upgrades or updates to your accounting technology.
To prepare for what is considered the largest accounting shift since Sarbanes-Oxley, you will need to scrutinize many aspects of your business and its accounting technology. There are six key features that SaaS accounting software needs to comply with the ASC 606 revenue recognition standard.
Your SaaS accounting software must:
- Be able to automate revenue allocation.
- Connect billing and revenue recognition.
- Use dual reporting for preparation and compliance.
- Sync with upstream CRM and contract processes.
- Provide visibility for all key stakeholders.
- Speed adoption with true multi-tenant cloud architecture.
Your path to ASC 606 compliance starts here. Sage Intacct natively supports ASC 605 and the new ASC 606 rules, lightening the burden on your finance staff with automated revenue recognition built in.
Download this E-book for a closer look at how Sage Intacct can help you plan and facilitate a smooth transition to ASC compliance. We’ll show you how to evaluate your current SaaS accounting software, and you’ll learn why your finance team and processes are certain to get overwhelmed with spreadsheets and longer audits if your technology isn’t ready for ASC 606.