Why Now is the Time to Take Action on Transitioning to the New Revenue Recognition Accounting Standard – Essential Client Considerations

By Beckie Reilly

There’s currently a lot of industry attention focused on the impending New Revenue Recognition Accounting Standard. It reminds me a bit of the build-up leading to the Year 2000 (Y2K) conversion of computer software calendar code for the new millennium.  There was a sense that chaos would ensue if proper plans and procedures were left undone or done incorrectly. So, businesses and governments alike took heed to prepare for when the clock struck twelve on January 1, 2000.

As I recall at 12:01, governments did not dissolve into anarchy, the stock market didn’t crash, and traffic lights continued to change on schedule. Was the threat over-hyped? Or was calamity avoided because the hype prompted action?

Skilled planning and adequate time to execute certainly played a critical role in the smooth technical transition to the new millennium. I’d argue the same approach should be taken for transitioning to the new standard. A certain sense of urgency is now upon the profession. The time for engaging and consulting with management at your clients has arrived (if you haven’t already started).

To help you begin to navigate the transition, we’re sharing a great resource by Ralph Nach, CPA, Senior Faculty and Technical Advisor for 20-20 Services. He is also a Principal, with Epstein+Nach LLC. The white paper titled Transitioning to the New Revenue Accounting Standard – Essential Client Considerations presents pertinent facts and practical advice to help you assess the urgency for taking prompt implementation action. We hope you find it useful.

Read the white paper here.

As always, thanks for reading. We welcome your feedback.

 

Beckie Reilly is the EVP, Sales for 20-20 Services. Through her work, she is plugged into the challenges facing the public accounting profession. Her passion is bringing learning and professional development solutions to firms so they can rise to the challenges with the highest level of competency and confidence. 

Posted in 2020 Insight.