When the accounting standards shifted from being industry-specific and rules-based to industry-agnostic and principles based, many organizations weren’t ready for the change. Even though most ERP and major accounting firms agreed that the new standards represent that largest standard change in over a decade, people are still scrambling to ensure they’re compliant.
The time has come to put that preparation into action!
From a commission accounting perspective, the new standards require collaboration across multiple departments, such as the sales team, the compensation team, the sales operations team and the finance team. Companies with a moderately large set of commissions employees and complex sales compensation plans will most likely find that sales compensation software can give the sales management team flexibility in setting and modifying compensation plans. To account for the capitalization and amortization balances, as well as the changes to those balances, companies are encountering roughly 100 times the commission data that they were managing before the standards were in place.
Don’t know how much data that means for you? Try our ASC 606 calculator.
We’ve prepared a how-to guide to get your team ready to manage the new complexity associated with commission accounting.
In this guide, you’ll learn more about:
- Misconceptions about cost-accounting under the new standards;
- The rules for cost-accounting in compliance with ASC 606;
- How a robust SPM solution can give your sales team greater flexibility and will simplify the accounting, forecasting and analysis of sales compensation for your finance team.