RGP is hearing from Public and Private companies who are working to get a handle on their Revenue Recognition compliance efforts. As with many new initiatives, most of those tasked with the responsibility of rolling out a contract review process began with authoring the process in Excel. This particular process, more than some, requires a number of people with varying technical skills and technical accounting expertise to work through a long checklist or multiple spreadsheets full of questions and considerations. And, like many others, these teams are racked with frustration over the common ills of spreadsheet-based processes:
- Almost as soon as the tool is put to use, the version is out of date and the data does not reconcile with other versions.
- It is difficult to track and understand which version is the latest or the “best”.
- Often, spreadsheets are not properly secured and suffer unintended changes.
- Changes to data attributes in the spreadsheets can have significant impact on conclusions.
- Sharing and communicating lessons and conclusions is a massive and disjointed effort.
- It is difficult to roll-up the results from multiple spreadsheets for analysis and reporting to management and auditors.
- If multiple people must work in and make adjustments to the spreadsheet, it can be remarkably challenging to trace the changes back to the appropriate party.
- It is virtually impossible to dictate order of responsibilities and to consistently communicate and enforce an approval process.
RGP has a few remedies that can help you to treat or avoid these ills.
Private Companies – RGP has a proven Revenue Recognition solution that can help companies from your early assessment through planning how you will fill gaps in policies and systems and can aid your team with the implementation of agreed upon solutions, controls, policies and associate training and communication.
Public Companies – Those who worked to tackle ASC 606 compliance on your own in year one can certainly still call on us to evaluate your program and to identify and guide you to address and close gaps.
All Companies can take advantage of RGP’s proprietary tool, policyIQ, to remedy the ills associated with spreadsheet based processes. Companies have the option of
- leveraging the flexible and configurable policyIQ to automate your own checklist or questionnaire or
- you can adopt the RGP solution with pre-built templates that guide the reviewers through the contract review process.
Contact us to learn more about our technical accounting expertise, project support, and proprietary technology: support@policyIQ.com.
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:
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
- Alert Sales Manager when
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.
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!