Regulation Roulette, Part I: ASC 606 and Subscription Businesses

It’s not news that revenue is the key indicator of a company’s financial performance and health. What is news is the accounting rules around the recognition and reporting on that revenue is about to change under ASC 606, particularly if you have a subscription-based business that derives revenue from contracts with customers. What’s the big deal? For starters, the impact of the change extends beyond a mere tweak to your accounting methods. It necessitates changes to your tracking, processes, and internal controls. The good news is, the earlier you identify the implication of the new standard, the better positioned you will be to ease the transition.

The purpose of this guide is to highlight the basics of ASC 606, what it means for your business, and the risks of not taking action. For a more detailed overview of how to plan your parth to compliance, be sure to read Regulation Roulette, Part II: Six Rules for ASC 606 Readiness.