ASC 606, can your contract review tool do this?

Spreadsheets, email, shared network drives…

…this is where most of our critical work starts! With the deadline to comply with the Revenue Recognition Standard now in our sights, many of your corporate accounting peers have met the harsh reality that these commonly used tools are not meeting their contract review needs. Disconnected spreadsheets do not keep their reviewers in-step with each other’s developments. They are habitually shared via insecure channels and we often find, even with the best of intensions and development, breakfreelists, formulas, and formatting within a spreadsheet can be compromised resulting in an unreliable tool. Aggregation of data for analysis and consolidation of conclusions for management review are nearly impossible feats with dozens (or, certainly, thousands) of manual spreadsheets.

For those of you who are relatively new to the policyIQ community, you might not have heard that policyIQ has been a constant in the RGP toolbox, serving to solve our clients’ problems for nearly 15 years.  We don’t make commission on software sales and are not incentivized to upsell you or to sell you a new tool or module. In fact, we work hard to make it possible to serve all areas of your business within one platform—we don’t have extra modules to sell you!

The flexibility of policyIQ to be easily customized for various initiatives has made it possible for our clients to hit the ground running in applying our web-based technology to their pressing Revenue Recognition needs.

A company may utilize policyIQ for the full contract cycle or simply as a contract repository, centralizing access and simplifying assignment of contracts to reviewers for ASC 606 analysis. In addition to guiding the reviewer through the 5 Steps outlined in ASC 606 required for each detailed review of contracts that are in scope, policyIQ also provides a place to document evidence of the reviewer’s considerations and tools to leverage that information for necessary analysis. Key conclusions from each step are automatically pulled out into a summary. Reviewers add final notes to the summary and systematically route all related content for review and approval, as desired and customized for each client.

piq_benefitsforrevrecThe ability to report on results of contract reviews in aggregate gives way to analyses not possible in spreadsheets. Look across all Performance Obligations by Revenue Stream, Geography, Business Division, Over Time vs Point in Time, Sales Channel, or Reviewer, for example. Reports also aid in the management of contract reviews—in the assessment phase and with ongoing reviews. Report on issues as they are being identified, assignment of contract reviews, progress of reviews, and impact of the standard on various divisions or revenue streams. Use reports to easily identify those contracts that warrant follow-up action.

plansforleasesWe delivered many new features in 2016 and some were developed specifically to sharpen the Revenue Recognition solution. We are wrapping up another release for spring and have an impressive road map that will go into development while the spring release is undergoing formal testing. And did you hear that upgrades are included free-of-charge?

We’re here to serve and grow with you.

Can you say that about your Revenue Recognition tool? Reach out to schedule a tour of policyIQ’s capabilities for ASC 606, compliance, audit, policy management or your other pressing information management needs!

This entry was posted in Best Practices, Industry News, Solutions and tagged , , , , , , , , , , , , by Stephenie Buehrle. Bookmark the permalink.

About Stephenie Buehrle

Stephenie is the “solutions” expert on the policyIQ team. With RGP since 2004, she designs and develops solutions that capitalize on the best practices of the hundreds of companies that she has touched, while tailoring each configuration to meet the unique needs of each client. Before joining RGP and the policyIQ team, Stephenie enjoyed working as an independent consultant in the non-profit sector. Stephenie also previously performed analyst services for a major brewer ranging from roles in biological and chemical services to analytical roles in business process improvement and innovation. Stephenie quips that she still doesn’t know what she wants to be when she grows up, but hopes to spend her days helping others (companies, individuals, and communities) to realize their full potential.

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