Regulations driving change
With the introduction of ASC606 and IFRS15, the accounting department has been forced to change. These new regulations on how revenue from contracts and leases are accounted for and fulfilled. To adjust, many companies have turned to spreadsheets, only creating more problems.
New standards for accounting for contract revenue and for leases impose more complex processes and ongoing reviews that are best handled by software. The standards also are more principles-based, requiring effective process control and comprehensive disclosures.
Only one-half (49%) of finance organizations have automated a significant amount of their routine processes.
Accounting organizations must apply end-to-end process and data automation for new revenue and lease accounting standards.