Baker Tilly works with enterprise software company to successfully implement Phase 1 of ASC 606 transition
Our client’s need
Baker Tilly’s client, an enterprise software company, provides project-based software in the government contracting and services industries. In 2016, the company entered into an agreement to sell to a public technology company. As a result, our client is now required to adopt ASC 606 earlier than expected. Our client contacted Baker Tilly to assist with initial assessment and discovery of the impact of implementing the new revenue recognition guidance.
The new revenue recognition standard has forced many organizations to evaluate their contracts with customers and the systems, processes, controls and documentation they have in place. For some, the accounting changes may make changes to the contracts themselves more viable, while others may find that the initial work for disclosures comprises the bulk of their change. Whatever your organization’s situation, companies should review the standard and its impacts.