Revenue Recognition Criteria (IFRS 15 and ASC 606) - When to Explore a QuickBooks Alternative
QuickBooks is just that—quick. With a few clicks, a business can have their accounting software operational. When a company needs insight from their financial reports, they’ll add Excel into the mix. As many organizations can attest, however, this approach to finance is error-prone, time-consuming, and ultimately, costly.
The time for change is now, especially with the new revenue recognition criteria (ASC 606 and IFRS 15). Under these new standards, organizations will have to drastically change how they recognize revenue and run reports—an especially daunting task for contract- or subscription-based businesses.
During the transition to the new guidelines you will use dual reporting, and have to record revenue and expenses under both sets of rules. It will become even more difficult to keep up with the QuickBooks-and-Excel reporting combination for usage-based billing, accounting, or forecasting. Your accounting staff will face a lot more hours of manual work, and you’ll face a much greater risk for data entry errors and discrepancies. The more mistakes, the more inaccurate your organization’s financial picture will be. Without accurate reporting, you can’t make real-time decisions for your business—which can lead to lost revenue.
Cloud financial software makes revenue recognition easier
With the new revenue recognition criteria, QuickBooks and Excel are taking on the appearance of a chewing-gum-and-baling-wire solution. A best-in-class cloud accounting solution such as Intacct is a smart and strategic alternative to QuickBooks. It provides a seamless solution for the entire cycle of subscription billing, revenue management, expense management, and reporting and analytics. You can manage each customer contract with confidence, from initial configuration, pricing, and quoting to ordering, billing, and recognition.
Intacct also offers an out-of-the-box module that completely automates dual reporting and posting with different accounting treatments for current and ASC 606 and IFRS 15 guidelines, saving hours of time and effort. And Intacct’s enterprise-wide capabilities help break down siloed legacy accounting systems, making compliance even simpler.
Replace errors with insights and manual labor with seamless automation
While switching from QuickBooks/Excel to a new financial accounting solution isn’t as simple as a few clicks, upgrading to Intacct can be well worth it. You’ll replace errors with insights and manual labor with seamless automation. Even better, the transition to the new revenue recognition criteria will be accomplished more quickly and with greater accuracy. To truly succeed under the new guidelines, it’s time to let the technology experts at Arxis help you make the smart move to the best QuickBooks alternative, Intacct.