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!

New policyIQ Solution: Detailed Contract Review for Rev Rec

Is your project for bringing your company into compliance with the Revenue Recognition Standard underway?

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With the January 2018 effective date fast approaching, organizations (public, private, and non-profit) are pressed to come up with a plan to review each of their agreements, and for each one that is in scope, to work through each of these five steps:

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RGP’s Revenue Recognition subject matter experts (SME) have developed an approach that effectively addresses all steps of the complex standard. And, again, RGP has gone the extra distance to develop a technology solution that will help you to tackle this effort. Beyond the repository for contracts and the secure data room for document review and project management, policyIQ now has a solution to both simplify and standardize detailed contract reviews while providing oversight, progress reporting, visibility for management review, and evidence for external auditors.

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If you haven’t yet defined your approach for assessing your organization’s contracts and setting a course for compliance with ASC 606 by the deadline, don’t worry. We have a complete, cost effective solution and we’re ready to help you make up some ground. Contact us for more information.

Twitter-review of the 2015 GAM Highlights

The IIA put on another impressive General Audit Management (GAM) Conference again this year. Below is a quick twitter-review of some 2015 #IIAGAM highlights. Remember that RGP is a Professional Services Firm with expertise in:

  • Human Capital
  • Finance & Accounting
  • Information Management
  • Governance, Risk & Compliance
  • Supply Chain
  • Legal & Regulatory
  • Corporate Advisory & Restructuring
  • Strategic Communications

We are particularly strong in cross-functional support, listening, helping to identify the common threads and root issues, and guiding an organization with a team of experienced professionals who will walk alongside your employees and leave them more knowledgeable and ready to make progress and gains than before we arrived.

Reach out to us and we’ll connect you with an RGP representative in your area.

Now, on to the GAM highlights!

Lots of speakers addressed the more prominent role of Internal Audit in the heavy activity of Mergers and Acquisitions.

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If they were not already making it a top priority, I’d bet 1,400 audit professionals attending GAM took the message back to their colleagues that they need to give cyber-security more attention

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Of course, Risk Management continues to be a hot topic.

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Don’t underestimate the work involved in preparing to comply with the Revenue Recognition Accounting Standard.

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These were just a few of the key topics discussed at the GAM Conference this year. You can gather more information from the IIA website, Twitter and other social resources and, you can join the conversation next year! We’ll look forward to visiting with you at the RGP booth!

policyIQ: Support for the Full Contract Lifecycle and Revenue Recognition Standard

Our clients helped us, early on, to recognize that policyIQ is an excellent match for their contract administration needs. Using policyIQ for Risk and Compliance, Audit, or Policies and Procedures, they realized that the features that gave them better control over the integrity of their information, more simplified access to the content, version control, workflow and reporting capabilities, and easy-to-understand-while-powerful security would also be great for management of their agreements and contracts.

Over the years, we have worked with a number of companies to help them bring automation to various areas of their contract lifecycle:

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Tracking critical attributes, in combination with features like policyIQ’s Custom Alerts, makes it possible to address key business decisions and deliverables related to a company’s agreements, for example:

  • Alert Procurement Manager when a Vendor Agreement is approaching the Contract End Date (i.e. within 30 days of )
  • Alert HR Manager when a new Staffing Agreement is published (trigger to send New Hire Packet to Employee)
  • Customer Contracts
    • Alert Sales Manager when
      • Expected revenue exceeds $30,000
      • The agreement is Approaching Expiration
    • Alert Operations Manager when
      • A Milestone has not been met by our team
      • A Reporting Date is approaching

And with more urgency now that we’re already into 2015, the Revenue Recognition Standard issued in May of 2014 is leading companies to put controls and measures in place to ensure compliance with the standard.

With a few quick adjustments, policyIQ can help by providing a place to capture, track, and monitor agreements and the variables that are critical for compliance. In addition to the fields that you might already be tracking (like the start and end dates of contracts, deliverables, report dates, approval requirements and renegotiation concerns), you can ensure that you’re considering the value of services delivered at various points in time, all associate agreements that may be pertinent, whether those agreements start and end in the same year, and so on.

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Have you organized your various agreements in policyIQ? Do you have questions about how to best configure policyIQ so that you can review and monitor your agreements from various perspectives? Have you updated your policyIQ configuration to better monitor critical attributes for compliance with the Revenue Recognition Standard? Reach out to the policyIQ team, support@policyIQ.com, and let us know what your pressing questions are—we’re happy to help!