14 Dec Prepare for ASC 606 for Revenue Recognition with PMO Lite
In previous posts, we’ve discussed the new guidelines to be imposed through ASC 606 for Revenue Recognition, set to go into effect in early 2018 for public companies and 2019 for all other entities. Now that we understand that its impacts are far-reaching, and affect multiple divisions and functions within the business, it’s time for leaders to start mapping out exactly how they will guide their organizations through the transition.
As with any significant business change, a well-constructed Project Management Office (PMO) ensures process standardization, provides efficient management and data collection, and maximizes resource use across the organization. In the case of preparing for ASC 606, a small scale PMO, or “PMO Lite”, is sufficient to drive your company through this temporary, deadline-oriented shift, when employees need to maintain their daily responsibilities while adjusting to the new requirements.
As with any PMO, the critical first step is to Assess the current state, and conduct a gap analysis to achieve the projected future state. Involved stakeholders should be identified with roles, responsibilities, and processes clearly defined to support the full project plan.
Next, it’s time to Execute the changes, with continuous monitoring and reporting of relevant metrics and compliance issues. Moving forward, the new state is supported on an ongoing basis with specific tools and templates designed to Sustain the implementation.
Understanding the scope of the impact of ASC 606 for Revenue Recognition and the need to treat it as any other internal change by creating a PMO Lite will enable your organization to not only meet the deadline but also to minimize any loss of productivity through the transition.
Stay tuned for more posts related to ASC 606, or contact us directly at firstname.lastname@example.org
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