Are Microsoft Dynamics users (and VARs) ready for ASC 606 revenue recognition standards?
Although the deadline to comply with the new ASC 606 (Revenue from Contracts with Customers) is fast approaching for public companies of all sizes - private companies have another year - many are still rushing to ensure that their accounting processes and systems are updated in time.
"I've been on dozens of webinars and I've done a few myself and I think the vast majority of companies are underestimating the criticalness of 606," says Neil MacDonald, Solutions Consultant at Binary Stream Software, a Microsoft Dynamics Gold ISV Partner.
MacDonald says he did a presentation of ASC 606 at a recent meeting of the Dynamics GP User Group and of the 35 people attending, only three even knew what ASC 606 was. He also recorded a session delivered to the MSDW Dynamics AX and GP audience earlier in 2017.
"At every webinar I attend, [it seems like] the number of people who know what it is, who are ready for it, are shockingly low," he says.
Why firms aren't ready
Companies aren't ready for ASC 606 because they seem to be unaware of when the new guidance goes into effect, or they think it doesn't apply to them, according to MacDonald.
"Unless you're in leasing, banking, and insurance, 606 applies to you if you have contracts with customers," he says. "The big changes are if something has to be deferred versus recognized upfront, companies have to make sure they're recognizing and/or deferring the correct amount."
ASC 606 is aimed at standardizing the way ...
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