Article written by:
Meghan Buxton, CPA
Manager, Assurance & Business Advisory Services
The beginning of 2019 marked the initial year impacted by the updated revenue recognition standards for private companies. Ernst & Young (EY) released some updated statistics revealing how implementation was going. Here’s what they found for private companies:
- 27% are in the diagnostic assessment phase
- 36% are still designing solutions
- 26% are in the solution implementation phase
If you have been hesitant to begin your revenue recognition update procedures, or you are stuck in the process, the numbers show you aren’t alone. Without question, the challenges have been more than originally anticipated by most companies. There is good news! EY’s survey also indicated that 94% of companies expect changes resulting from this implementation to deliver value that exceeds the original investment (up 62% from the prior year). This includes improved data quality, enhancing controls and compliance and better system automation.
Are you ready? GBQ can help by utilizing diagnostic tools to identify key areas to consider during implementation, assist in producing templates, train and educate personnel and provide consultations regarding implications to finance including debt covenants and budgeting.