Reduce 606 Re-work!

Many calendar year end private companies are either just beginning or in the midst of assessing the impacts of the new revenue recognition standard. The level of investment by individual companies varies. But for those with significant numbers of contracts to be sampled, multiple divisions, or varied contractual terms, the project can be resource intensive. One of the first pieces of advice I give to each client I work with in this area is to embrace auditor engagement throughout the implementation process. The level of judgment required in applying the new standard is unprecedented for many companies, and the impacts of a judgment made early in the process can significantly change the ultimate application of the standard or the methods utilized for data analysis in implementation. When concluding on significant judgments, ensuring that your auditor understands the position and doesn't have a different perspective on the front end can potentially save your company from wasting significant resources. My advice: don't wait for your auditors to reach out to you. Throughout the process, continue to dialogue and make this implementation as efficient as it can be avoiding any last minute surprises.