Changes in Revenue Recognition Are Coming

In the upcoming year(s), your firm will need to pay closer attention to how revenue is reported because of current and upcoming changes in the Financial Accounting Standards Board (FASB) / International Accounting Standards Board (IASB) Revenue Recognition standards.  These changes will impact the way you report revenue if your business has specific types of contracts and relationships with your customers.

As you know, revenue recognition is how you financially account for the product or service your company provides its customers.  Unless you are a cash based business, this (revenue recognition) – in the past, has been at the discretion of your accounting team. However, recent changes to the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) may advance or delay this recognition of revenue.

Every firm should now be examining how they do business to insure they are compliant with these new standards. There may be tax implications at stake. It does not matter if you a one-person operation, or a multi-billion dollar enterprise – the new standards apply to all.  The difference will be in the timing (the start date) of when the firm needs to come into compliance. The purpose of the changes is to unify accounting principles across industries.

With the new requirements, a firm’s revenue will now be based on agreed upon milestones / performance objectives.  Examples of those milestones could be delivery of a package; partial completion of a construction project; IT projects.

Palazzo, Inc is a trusted resource to help you understand the evolving rules when it comes to revenue recognition.

We Offer The Solutions…

Palazzo Inc is experienced in Revenue Recognition

For 20+ years, the consultants at Palazzo, Inc. have helped businesses across all industries with issues pertaining to revenue recognition, but primarily within:

  • Property management
    AEC (Architecture, Engineering, Construction)
  • Professional Services

Palazzo Inc consultants have the knowledge to help you analyze and implement solutions to the new revenue recognition standards. We can assist your firm in:

  • Becoming compliant to meet your specific deadline(s), and;
  • Following up to help you implement additional changes to your business process.

We have implemented software solutions for large and mid-sized companies, principally through the Oracle JD Edwards World and EnterpriseOne platforms.

Don’t Get Left Behind

If you are unsure of what is happening with the latest revenue recognition requirements, you are not alone.

Palazzo, Inc can help you establish the corporate guidelines and process for your organization, and the best strategies for reporting. We’ve assisted many businesses with their revenue recognition processes. We understand the details of the current and upcoming changes, and stand by, ready to help your business become compliant with the new standards.

Make sure your accounting practices remain in compliance.

By completing / submitting our contact form, you can schedule an appointment for a discovery consultation to ensure that your firm is headed in the right direction.

Apply today to see if you qualify for a FREE 15-minute, no-obligation phone call to determine the next steps for compliance for your firm.