An Executive Perspective
The new revenue recognition standards (ASC 606 and IFRS 15) not only affect how recurring revenue is reported, but also how companies account for commissions and other selling costs for transactions covered by contracts that are in force for a year or more. This additional layer of complexity further complicates finance and sales departments that rely on spreadsheets to track this information. Sales compensation management software can simplify the accounting, reduce the chance of errors and cut audit costs. In this exclusive Q&A, Robert Kugel, SVP & Research Director at Ventana Research, answers questions about why new standards are getting so much attention, what the associated costs to companies will be due to the new standards, why standard ERP systems may not be enough, and more.