I S Y O U R S O F T W A R E C O M PA N Y O U TG R O W I N G Q U I C K B O O K S ? 5 S I G N S I T ' S T I M E TO M O V E
Sign 3: You Calculate Revenue Recognition in Spreadsheets
ASC 606 has created a huge burden for revenue accounting. QuickBooks users
like yourself are forced to manage revenue recognition and expense amortization
in spreadsheets. If handling new contracts weren't enough, every time there's
an upsell, down-sell, renewal, hold/resume, or extension, schedules need to be
adjusted. Add in multi-element arrangements, and you take the complexity and
manual calculations to a whole new level. And, at the end of every period, the
data needs to get entered back into the QuickBooks general ledger (GL) and
reconciled.
To comply with ASC 606, you need to know your contract assets and liabilities.
Most companies we talk with find this overwhelming to do in spreadsheets on an
ongoing basis. It's just not scalable.
ASC 606 compliance
Calculating complex revenue recognition is error-prone and
raises concerns about accuracy and audits.
Delayed close
Managing the calculations in outside spreadsheets with data
that needs to be rekeyed into the GL slows down the close.
Inaccurate investor valuation
Lack of visibility and understanding of recognized revenue and
cash positions negatively impacts your valuations.
Opportunity cost of high value staff
Your experienced staff could be be er utilized—and happier—
doing more strategic work.
Challenges
"With 2,000 revenue schedules, my best team member spends all her time calculating revenue recognition in
spreadsheets and manually transferring it to our general ledger"
