Is your team prepared to manage cost accounting under ASC 606?
As you may already know, under the new standards the way that you account for revenue from contracts will not only be impacted but also how you account for incremental costs of acquiring customer contracts. Not to mention, commissions directly associated with securing contracts need to be capitalized as an asset and amortized over the period the service is provided to customers.
Speaking to our customers, we know that there are still many misconceptions about compensation accounting under ASC 606. Such as:
- ERP systems can address the requirements;
- Underestimating the increase in data. The creation of amortization schedules will result in 20x to 100x the data;
- Change can be easily managed.
We recently hosted a webinar where our Director of Professional Services, James McLauchlin looked at how cost accounting under ASC 606 will impact subscription-based businesses. During the webinar, James focused on:
- The impact ASC 606 may have on accounting for incentive compensation accruals.
- Automating the incentive compensation expense accounting process by integrating commissions earnings and payouts with cost accounting.
- How to dynamically true-up incentive compensation capitalization and amortization balances due to contract and/or subscription changes.
Finally, James showcased a demo of Obero’s Compensation Accounting Management Module and its ability to help you to increase compliance by aligning the cost of sales expense recognition with associated revenue recognition. If you were unable to attend the webinar, you can watch it on-demand here.
Get your personalized demo of Obero’s Compensation Accounting Module