Preparing For ASC 606: 8 Components Of A Rock Solid Revenue Recognition Policy

As a financial leader for a growing SaaS company, you understand the importance of accurate revenue recognition in tracking the overall health of your business, identifying opportunities for growth and making informed decisions.

Revenue recognition is critical for every SaaS business, which is why it’sequally important to roll-out policies and procedures that will ensure revenue is recognized consistently across your business and adheres to the New Revenue Recognition Standard (ASC 606)

If you’re creating an accurate, compliant and consistent revenue recognition policy, you’ll need these eight critical components:

1. Revenue types
2. Special Deals
3. Setup Fee Revenue
4. Ongoing Support Revenue
5. Hourly Support Revenue
6. On-site/Web-based Training
7. Relative Selling Price Allocation
8. Financial Reporting