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Find clear ASC 606 examples for software, SaaS, construction, healthcare, and more. See how revenue recognition works in real-world industry scenarios.
How a SaaS company recognizes monthly subscription fees is completely different from how a construction firm accounts for a long-term project. This is where the power of ASC 606 comes in. It provides a flexible yet universal framework that applies to any business model. The key is understanding how to adapt its five core steps to your specific contracts and deliverables. It’s not a one-size-fits-all checklist. This article will explore the nuances of the standard across different sectors, providing concrete asc 606 examples to illustrate how to handle everything from bundled services to contract modifications, ensuring your financial reporting is both compliant and accurate.
If you’ve heard the term ASC 606 floating around, you might think it’s just another piece of accounting jargon. But it’s actually a game-changer for how businesses report their income. In short, ASC 606 is the accounting standard that provides a universal framework for recognizing revenue from customer contracts. It was jointly created by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) to clear up inconsistencies and make financial statements more comparable across different industries.
Before ASC 606, revenue recognition rules were often industry-specific, which made it tough to get an apples-to-apples comparison of two companies' financial health. This new standard replaces that patchwork of guidance with a single, principles-based model. The goal is to ensure that companies recognize revenue in a way that accurately reflects the transfer of goods or services to customers. It’s all about telling a clearer, more consistent story about your company’s performance.
At its heart, ASC 606 is built on one core principle: a company should recognize revenue when it transfers promised goods or services to a customer, in an amount that reflects what the company expects to receive in exchange. This shifts the focus from the industry's old rules to the specifics of each customer contract. Instead of just booking revenue when you get paid, you now have to look at when the customer actually gains control of the product or service. This change provides a more faithful representation of a company's financial performance and makes it easier for investors and stakeholders to understand the nature, amount, and timing of revenue. It’s a significant departure from previous standards, which you can learn more about by exploring the key differences between ASC 605 and 606.
The biggest impact of ASC 606 is on the timing of your revenue recognition. Because revenue is now tied to the fulfillment of performance obligations—the promises you make to your customers—it might be recognized earlier or later than under previous rules. This can cause significant fluctuations in your financial statements during the transition period and beyond. Beyond timing, ASC 606 also demands greater transparency. You’re required to provide detailed disclosures in your financial reports about your contracts with customers, including the significant judgments you made when applying the guidance. This gives investors a clearer window into your revenue streams and the stability of your earnings. For more on financial best practices, you can find a wealth of insights on the HubiFi blog.
The most significant change introduced by ASC 606 is its five-step model for revenue recognition. This framework guides you through the entire process, from identifying the contract to recognizing revenue as you satisfy your obligations. We’ll break down each of these steps in the next section. This model replaces the scattered, industry-specific guidance of the past with a unified approach. It requires more judgment from finance teams, as you have to interpret contracts and allocate transaction prices based on the specific promises made to customers. This is especially true for businesses with complex contracts, like those in the software industry, which face unique software revenue recognition challenges. The standard also brings new guidance for handling contract modifications, variable consideration, and licensing.
At the heart of ASC 606 is a five-step model that guides you through the entire revenue recognition process. Think of it as a universal framework designed to bring consistency and clarity to how companies report their earnings, no matter the industry. Before this standard, revenue recognition rules could feel a bit like the Wild West, with different guidelines for different types of transactions. This model changes that by creating a single, principle-based approach.
The goal is to recognize revenue in a way that accurately reflects the transfer of goods or services to customers. It’s about telling the true story of your company’s performance. Following these five steps ensures that you book revenue when it’s truly earned, not just when the cash hits your bank account. This process requires careful judgment and a deep understanding of your customer contracts, but mastering it is key to compliance and accurate financial reporting. Let’s walk through each step so you can see how it all comes together.
First things first, you need to be sure you have a legitimate contract. This might sound obvious, but ASC 606 has specific criteria. A contract doesn't have to be a 50-page document filled with legal jargon. According to industry guidance, a contract can be written, oral, or even implied by your usual business practices, as long as it creates enforceable rights and obligations.
For a contract to be valid under this standard, it must meet a few key conditions: both parties have approved the agreement, the rights and payment terms for goods or services are identified, the contract has commercial substance, and it's probable that you'll collect the payment you're entitled to. This step sets the foundation for everything that follows.
Once you have a contract, you need to figure out exactly what you’ve promised to deliver. These promises are called "performance obligations." A performance obligation is a commitment to provide a "distinct" good or service to your customer. So, what makes something distinct? A good or service is considered distinct if the customer can benefit from it on its own or with other resources they can easily get.
For example, if you sell a software license along with an installation service, you need to determine if they are one or two separate performance obligations. If the customer could hire someone else to do the installation, they are likely two distinct obligations. Identifying these correctly is crucial for the next steps.
Now it’s time to talk money. The transaction price is the amount of payment you expect to receive in exchange for fulfilling your promises. This sounds straightforward, but it can get complicated. The price isn't always a fixed number listed on an invoice. You also have to account for any "variable consideration," which includes things like discounts, rebates, refunds, credits, or performance bonuses.
Estimating this variable consideration requires you to use the best information available to determine the likely amount you’ll receive. This step is all about figuring out the total value of the contract before you start allocating it to your different performance obligations.
If your contract has multiple performance obligations (as identified in Step 2), you can’t just recognize the full transaction price at once. You need to divide it up and assign a portion of the total price to each separate promise. The standard way to do this is based on the standalone selling prices of each distinct good or service.
In simple terms, you ask: "What would I charge for this specific item if I sold it on its own?" If you don't have a standalone price, you'll need to estimate it. This allocation ensures that the revenue you recognize for each deliverable accurately reflects its value, which is essential for complex, high-volume businesses that need clear data visibility.
You’ve made it to the final step: actually recording the revenue. This is where all your hard work pays off. You recognize revenue when (or as) you satisfy each performance obligation. The key moment is when you transfer control of a good or service to the customer, meaning they now have the ability to direct its use and get its benefits.
This transfer can happen at a single point in time (like when a customer buys a product in your store) or over time (like with a year-long service subscription). Automating this final step ensures you recognize revenue accurately and on schedule, which is exactly what HubiFi's solutions are designed to do.
The five-step model for revenue recognition provides a universal framework, but its application looks different depending on your business. How a SaaS company recognizes subscription fees is worlds apart from how a construction firm accounts for a long-term building project. Understanding these industry-specific nuances is key to getting compliance right. Let’s look at a few common examples to see how the principles of ASC 606 play out in the real world.
Software and SaaS companies often have complex contracts that bundle multiple services, like licensing, setup, training, and ongoing support. Under ASC 606, you can’t just recognize the entire contract value upfront or evenly over the term. You have to identify each of these items as a separate performance obligation. The challenge then becomes allocating the total transaction price to each distinct service based on its standalone selling price. For instance, revenue from a software license might be recognized when the customer gets access, while support revenue is recognized monthly over the subscription period. Getting this right requires a detailed approach to software revenue recognition and robust systems to track each obligation.
For industries with long-term projects, like construction and manufacturing, revenue is typically recognized over time instead of at a single point. Think of building a custom office complex for a client. As you complete phases of the project, you are transferring control of the asset to the customer. ASC 606 requires you to recognize revenue in a way that reflects this progress. You can measure progress using methods like costs incurred, labor hours worked, or units produced. This approach provides a more accurate picture of a company’s financial performance during the project's lifecycle, but it demands meticulous project management and cost tracking to ensure the revenue recognized aligns with the work completed at each stage.
Healthcare revenue recognition is complicated by the sheer variety of services and payment models. A patient’s final bill often involves payments from insurance companies, government programs, and the patient themselves, making the transaction price highly variable. Under ASC 606, a healthcare provider must estimate the total amount it expects to actually collect from a patient for a service. This estimate considers historical collection rates and contractual adjustments. Revenue is recognized when the service, like a consultation or procedure, is provided to the patient. The main difficulty is accurately forecasting that final payment amount and adjusting for it, which requires strong data analytics and a clear understanding of payer contracts.
Telecommunications companies are known for bundling products and services—think of a new phone that comes with a two-year data plan. ASC 606 requires these companies to unbundle these packages for accounting purposes. You must identify the distinct performance obligations, like the physical handset and the monthly network service. Then, you allocate the total contract price between them. Revenue from the phone is recognized when the customer receives it, while the service revenue is recognized each month as you provide it. This prevents companies from recognizing all the revenue upfront and helps avoid common revenue recognition issues that can misrepresent financial health, especially when promotions and discounts are involved.
On the surface, retail and ecommerce seem simple: a customer buys a product, and you recognize the revenue. For the most part, that’s true—revenue is recognized at the point of sale or upon delivery when control transfers. The complexity comes from variable consideration, mainly product returns and loyalty programs. You can’t just wait for a return to happen to adjust your books. Instead, the principles of ASC 606 require you to estimate future returns based on historical data and recognize a liability for expected refunds. This means you recognize slightly less revenue at the initial point of sale to account for the products you anticipate will be sent back, giving a more accurate financial picture.
The five-step model provides a solid framework, but real-world contracts are rarely that simple. They come with bundles, mid-stream changes, and special conditions that can make revenue recognition feel like a puzzle. The key is to know how to apply the core principles of ASC 606 to these everyday situations. When you understand how to treat these common scenarios, you can build a consistent process that keeps your financials accurate and your audits smooth.
Think of this section as your field guide. We’ll walk through the most frequent complexities you’re likely to encounter, from multi-element deals to contract modifications. Getting these right is crucial for a clear financial picture and for making strategic decisions with confidence. With the right approach, you can handle these scenarios systematically instead of treating each one as a fire drill. Let’s look at how to manage them.
Many businesses sell products and services together in a single package—think a software license bundled with installation and a year of customer support. Under ASC 606, you can’t just recognize the total contract value as one lump sum. Instead, you need to identify each distinct promise to the customer, known as a performance obligation.
This means you have to break down the bundle into its individual parts. Once you’ve identified each separate obligation, you must allocate the total transaction price across them based on their standalone selling prices. Revenue is then recognized as you deliver on each specific promise, giving a more accurate view of your earnings over time.
Contracts aren't always set in stone. Clients may want to add new services, reduce the scope, or change terms partway through an agreement. When a contract is modified, you have to determine how to account for the change. Does it create a new, separate contract, or does it alter the existing one? The answer dictates how you recognize future revenue.
This process can be a major headache, especially for companies with a high volume of contracts or those using older systems that make tracking changes difficult. Effectively managing and interpreting contract data is essential. A clear process for handling modifications ensures that your revenue reporting stays accurate and compliant, even when the goalposts move.
Your transaction price isn't always a fixed number. It can include variable consideration like performance bonuses, rebates, or discounts, which you must estimate and include in the total price. When you offer a discount on a bundled deal, ASC 606 requires you to allocate that discount proportionally across all the performance obligations in the package.
For example, you can’t just apply a $100 bundle discount entirely to the software license and not the accompanying support services. The discount must be spread fairly between both items based on their standalone value. This prevents you from front-loading revenue and ensures your financial reporting reflects the true value of each deliverable.
Many services are delivered over a period rather than at a single point in time. Think of a year-long SaaS subscription, a multi-month consulting project, or a large-scale construction build. In these cases, you don’t recognize all the revenue when the contract is signed. Instead, you recognize it over time as you satisfy your performance obligations.
To do this, you need a reliable method for measuring your progress toward completing the work. This could be based on time elapsed, costs incurred, or milestones achieved. Recognizing revenue over time provides a more accurate picture of your company’s financial performance, matching your earnings to your actual work. This is one of the most common revenue recognition issues that can cause problems if not handled correctly.
If your business licenses intellectual property (IP) like software, media, or brand names, ASC 606 has specific guidance. You need to determine whether the license gives the customer a "right to use" your IP as it is, or a "right to access" your IP as it changes over time. This distinction is critical because it determines the timing of your revenue recognition.
A "right to use" license, like for off-the-shelf software, typically means you recognize revenue at the point in time when the customer can first use the IP. A "right to access" license, common with SaaS products that include ongoing updates, requires you to recognize revenue over the license term.
Warranties and return policies are standard business practice, but they have implications for revenue recognition. You need to assess whether a warranty is simply an assurance that the product will function as promised or if it’s a separate service. A standard quality-assurance warranty is not a separate performance obligation. However, if a customer can purchase an extended warranty separately, it is considered a distinct service, and you must allocate a portion of the transaction price to it.
Similarly, you must account for potential returns by estimating the value of goods you expect customers to send back. You can only recognize revenue for the sales you anticipate keeping.
Making the switch to ASC 606 can feel like a huge undertaking, and let’s be honest, it often is. It’s more than just a new rule to follow; it’s a fundamental shift in how you look at and report your revenue. Many businesses run into similar roadblocks along the way, from deciphering complex contracts to getting their existing systems to cooperate. The good news is that these challenges are well-documented, and with a bit of foresight, you can create a clear path forward.
The key is to break the process down into manageable pieces. Instead of seeing it as one giant mountain to climb, think of it as a series of smaller hills. You’ll need to get granular with your contracts, wrangle your data, update your tech stack, and get your team on the same page. It requires a coordinated effort across departments—not just finance, but sales, legal, and operations, too. By anticipating these common hurdles, you can build a strategy that addresses them head-on, turning a potentially painful transition into a smooth and successful one. This proactive approach not only ensures compliance but also provides deeper insights into your business's financial health.
At the heart of ASC 606 is the need to understand your customer contracts inside and out. One of the biggest initial hurdles is correctly identifying the distinct "performance obligations"—or the specific promises you've made to your customer. This can be tricky when a single contract includes multiple products and services, like software licenses, implementation services, and ongoing support. You have to determine if each promise is separate or part of a combined item. Getting this wrong can throw off your entire revenue timeline, which is why tackling these revenue recognition issues early is so important for financial accuracy.
Implementing ASC 606 often requires a level of data detail that many companies aren't used to tracking. You need to connect contract terms, performance obligations, and transaction prices, which can be a heavy lift if your data is spread across different systems or stored in spreadsheets. For businesses with a high volume of transactions or complex contracts, this can feel especially daunting. The standard highlights how older computer systems and limited resources can make it a struggle to effectively manage and interpret contract data. This can lead to inaccuracies and delays, making a strong data management strategy a non-negotiable part of the process.
Your existing accounting software might not be equipped to handle the nuances of ASC 606. Many legacy systems were built for older revenue recognition rules and can't easily manage things like allocating revenue over time or handling contract modifications. This is particularly true for subscription-based businesses that deal with constant changes, prorations, and co-terming. Implementing robust automated systems is often the most effective way to manage these complexities, streamline the process, and reduce the risk of manual error. It’s about finding a solution that works with your business model, not against it.
ASC 606 isn't just a finance problem—it's a company-wide initiative. Your sales team needs to understand how different deal structures affect revenue, and your legal team needs to be aware of the implications of certain contract clauses. Without proper training, you risk having departments operate in silos, creating contracts that are a nightmare for the accounting team to process. To ensure everyone is aligned, companies should train their staff on the new rules. This creates a shared understanding and helps build a compliant-first culture from the ground up.
Getting compliant with ASC 606 is the first step, but staying compliant is an ongoing effort. Your business isn't static—you'll introduce new products, enter new markets, and your contract terms will evolve. Each change needs to be assessed through the lens of ASC 606. This requires establishing strong internal controls and a process for regular review. Adhering to the guidelines isn't just about checking a box for auditors; it ensures your subscription revenue recognition remains accurate and defensible over the long term, protecting your business and providing stakeholders with reliable financial data.
Getting your revenue recognition process right isn't just about staying compliant—it's about building a strong financial foundation for your business. While the rules of ASC 606 can feel a bit dense, adopting a few key practices can make a world of difference. Think of it less as a rigid set of rules to follow and more as a framework for creating clarity and consistency in your financial reporting. When your revenue data is accurate and reliable, you can make smarter decisions, plan for the future with more confidence, and build trust with investors and stakeholders.
The goal is to create a system that is repeatable, defensible, and scalable. This means moving beyond messy spreadsheets and ad-hoc processes. By focusing on solid documentation, strong internal checks, smart automation, and regular performance monitoring, you can turn revenue recognition from a recurring headache into a strategic advantage. Let’s walk through five best practices that will help you streamline your approach and keep your financials in top shape.
One of the cornerstones of ASC 606 is the requirement for detailed disclosures about your revenue policies. This is where a solid documentation strategy comes in. You need a clear and consistent method for recording the judgments you make at each step of the five-step model. This includes how you identify contracts, define performance obligations, and determine transaction prices. Think of it as creating a playbook for your revenue recognition. This documentation is not just for auditors; it provides a crucial reference for your team, ensuring everyone applies the rules the same way and helping you maintain consistency as your business grows.
Strong internal controls are your safety net. They are the processes and procedures you put in place to catch errors and ensure accuracy. One of the biggest challenges under ASC 606 is correctly identifying performance obligations within a contract, and this is where controls are critical. This could involve requiring a second person to review complex contracts or implementing system-level checks that flag unusual transactions. By building these checks and balances into your workflow, you reduce the risk of misstatements and create a more reliable financial reporting process that can stand up to scrutiny.
For any business with a high volume of transactions, manual revenue recognition is a recipe for errors and inefficiency. Implementing robust automated systems is the single most effective way to manage the complexities of ASC 606, especially for subscription models with frequent changes, co-termed contracts, and multi-currency transactions. Automation streamlines the entire process, from data collection to journal entry creation, which drastically reduces the risk of human error. It also frees up your finance team from tedious manual work, allowing them to focus on more strategic analysis and planning.
No one loves audits, but you can make them a lot less painful. When you have a well-documented process with strong internal controls and reliable automation, you’re already halfway there. Proper implementation of ASC 606 improves the comparability and transparency of your financial statements, which is exactly what auditors want to see. Being prepared means you can quickly provide the evidence and explanations they need, demonstrating a clear and compliant revenue process. This level of audit readiness not only smooths the audit process but also builds confidence with your board and investors.
Revenue recognition isn't a one-and-done task; it's an ongoing process that provides critical insights into your business's health. Regularly monitoring your revenue streams and related metrics is essential. Accurate revenue recognition ensures your financial statements reflect true performance, which is the foundation for sound strategic planning. By keeping a close eye on your data, you can spot trends, identify potential issues before they become major problems, and make informed decisions about pricing, sales strategies, and resource allocation. This continuous feedback loop turns your compliance efforts into a powerful business intelligence tool.
Getting ASC 606 right doesn't have to feel like you're going it alone. The right tools and resources can make the process much smoother for you and your team. From powerful software to simple checklists, here are some of the best resources to support your compliance efforts and keep your financial reporting accurate.
Manual revenue recognition is a recipe for errors, especially for high-volume businesses. Implementing a robust automated system is one of the most effective ways to manage the complexities of ASC 606. These platforms can handle subscription changes, cancellations, and multi-currency transactions without missing a beat. For instance, HubiFi’s Automated Revenue Recognition solution is designed to streamline this entire process. Automation not only saves countless hours but also provides the real-time data you need to make smart, strategic decisions for your business.
Your customer contracts are the foundation of revenue recognition under ASC 606. If you can't effectively manage and interpret that contract data, you risk inaccuracies and delays. A dedicated contract management system (CMS) can be a lifesaver. It acts as a central repository for all your contracts, making it easier to identify performance obligations and track modifications. This level of organization is crucial for providing the detailed disclosures required by the standard and ensuring your financial accuracy is always on point.
ASC 606 introduces a lot of new concepts, and you can't expect your team to become experts overnight. Investing in training is essential to get everyone on the same page. This is especially true for companies dealing with complex contracts or limited resources. A solid training program ensures your staff understands the new requirements and can apply them correctly in their day-to-day work. Making sure your team is well-versed in the 5-step guide will build confidence and reduce the risk of costly compliance mistakes down the road.
Sometimes, you just need to call in a specialist. If you're struggling with the nuances of ASC 606, like identifying distinct performance obligations or allocating transaction prices, don't hesitate to seek expert advice. Consulting with professionals who live and breathe this standard can provide clarity and help you handle complex scenarios with confidence. An expert can offer tailored guidance that prevents small revenue recognition issues from turning into major problems, ensuring you stay compliant and audit-ready.
A simple checklist can be an incredibly powerful tool for maintaining consistency and accuracy. Creating internal review checklists helps your team follow the ASC 606 framework step-by-step for every contract. This ensures that all performance obligations are identified, transaction prices are allocated correctly, and revenue is recognized at the right time. It’s a practical way to implement strong internal controls and document your process, making it much easier to address potential revenue recognition issues and demonstrate compliance when auditors come knocking.
Switching to ASC 606 isn't just a task for your accounting team; it's a strategic project that touches multiple parts of your business. A thoughtful rollout plan is your best defense against last-minute scrambles and costly errors. Think of it as building a solid foundation. Without one, you risk inaccuracies that can ripple through your financial reporting and decision-making for years. A successful transition requires careful planning, the right tools, clear communication, and a commitment to maintaining your new processes.
Breaking down your implementation into manageable steps will make the entire process feel less overwhelming. You’ll want to map out a clear timeline, get the right people and systems in place, keep everyone in the loop, and create a plan for what happens after you go live. This approach helps you anticipate challenges, from wrangling complex contract data to getting your team up to speed. By treating this as a core business initiative, you set yourself up not just for compliance, but for a clearer, more accurate view of your company’s financial health. Let’s walk through the key pillars of a successful rollout.
Implementing ASC 606 can be a heavy lift, especially if you’re dealing with complex contracts, large volumes of data, or older systems. Rushing the process is a recipe for mistakes. A realistic timeline is your best friend here. Start by mapping out key phases: an initial assessment of your current processes, system selection and configuration, data migration, thorough testing, and finally, the go-live date. Be honest about how long each step will take. For many companies, the biggest hurdles are effectively managing and interpreting contract data, which can lead to unexpected delays. Building some buffer into your schedule will help you handle these challenges without derailing the entire project.
A successful ASC 606 implementation depends on having the right mix of people, technology, and budget. Start by assembling a cross-functional team with members from accounting, sales, legal, and IT to ensure all perspectives are covered. Technology is another critical piece. Manually tracking revenue for subscription changes or multi-currency transactions is nearly impossible at scale. Implementing robust automated systems is key to streamlining the process and ensuring accuracy. Look for solutions that offer seamless integrations with your existing ERP and CRM to create a single source of truth for your revenue data. Finally, be realistic about the budget, accounting for software costs, team training, and any potential consulting fees.
Clear and consistent communication is essential throughout the transition. Your key stakeholders—including investors, leadership, auditors, and your internal team—need to understand how ASC 606 will impact financial reporting. Remember, the standard requires more detailed disclosures about your revenue policies, performance obligations, and transaction prices. Proactively communicating these changes helps manage expectations and builds confidence. Schedule regular check-ins with your implementation team to keep the project on track and host informational sessions for leadership to explain shifts in revenue patterns. This transparency ensures everyone is aligned and prepared for the changes ahead.
Getting to the go-live date is a huge milestone, but the work doesn’t stop there. ASC 606 compliance is an ongoing effort, not a one-time project. Your business will continue to evolve with new products, pricing models, and contract terms, and your revenue recognition process must adapt accordingly. Establish a plan for regular reviews of your policies and controls. It’s also important to have a system for training new hires on your ASC 606 procedures. Proper, ongoing revenue recognition ensures your financial statements accurately reflect performance, which is crucial for making smart business decisions and maintaining regulatory compliance.
Why was ASC 606 created in the first place? Before ASC 606, the rules for recognizing revenue were scattered and specific to different industries. This made it incredibly difficult to compare the financial health of two companies, even if they were in similar fields. The new standard was introduced to create a single, universal framework that clears up those inconsistencies. The goal is to ensure that revenue is reported in a way that truly reflects when a company has delivered on its promises to a customer, making financial statements more transparent and reliable for everyone.
What's the single biggest change I need to be aware of with ASC 606? The most significant shift is moving from an industry-based model to a contract-based one. Instead of just booking revenue when you send an invoice or receive cash, you now have to recognize it as you fulfill the specific promises—or "performance obligations"—in your customer contracts. This means the timing of your revenue might change, as it's now directly tied to when you transfer control of a good or service to your customer.
Does this standard apply to all businesses, even small ones? Yes, ASC 606 applies to all entities that enter into contracts with customers to transfer goods or services, regardless of their size or industry. While the complexities might be greater for a large software company than for a small retail shop, the core five-step model applies to everyone. The key is to understand how the principles relate to your specific business model and customer agreements.
Can I manage ASC 606 compliance with spreadsheets? While it might be tempting for a very small business with simple contracts, relying on spreadsheets quickly becomes risky and inefficient as you grow. Spreadsheets are prone to manual errors, make it difficult to track contract modifications, and can't easily handle the complex allocations required by the standard. For any business with a moderate volume of transactions or bundled services, an automated system is the most reliable way to ensure accuracy and save your team from countless headaches.
What's the most common mistake companies make when implementing ASC 606? One of the most frequent missteps is underestimating the effort required to analyze contracts. Many businesses don't realize how much judgment is needed to correctly identify each distinct performance obligation within a single agreement. Rushing this step or failing to document the reasoning behind your decisions can lead to inaccurate revenue timing and major compliance issues down the road.
Former Root, EVP of Finance/Data at multiple FinTech startups
Jason Kyle Berwanger: An accomplished two-time entrepreneur, polyglot in finance, data & tech with 15 years of expertise. Builder, practitioner, leader—pioneering multiple ERP implementations and data solutions. Catalyst behind a 6% gross margin improvement with a sub-90-day IPO at Root insurance, powered by his vision & platform. Having held virtually every role from accountant to finance systems to finance exec, he brings a rare and noteworthy perspective in rethinking the finance tooling landscape.
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