Oops! Something went wrong while submitting the form.
Get a Demo
See your data in HubiFi < 2 days
Get clear on revenue recognition accounting with this practical 5-step guide, including tips for compliance, common challenges, and essential tools.
As your business scales, managing financials on spreadsheets becomes a serious liability. This is especially true when it comes to tracking income from complex contracts or subscriptions. A single formula error can throw off your entire financial picture. Modern revenue recognition accounting is about moving beyond manual processes and building a reliable, automated system. This approach not only ensures you stay compliant with standards like ASC 606 but also provides the real-time data visibility needed for smart growth. This article explores how to implement a robust system, from choosing the right tools to automating workflows for accuracy and efficiency.
At its heart, revenue recognition is an accounting principle that sets the rules for when and how your business records income. It’s a core part of the Generally Accepted Accounting Principles (GAAP) that ensures companies report revenue in a consistent and transparent way. Think of it as the official standard for telling your financial story accurately. Instead of just booking income when cash hits your bank account, this principle requires you to record revenue when you’ve actually earned it by delivering a product or service to your customer.
This might sound simple, but it gets tricky with complex contracts, subscriptions, or multi-part projects. Getting it right is non-negotiable for creating financial statements that investors, lenders, and auditors can trust. It provides a clear and standardized snapshot of your company’s performance, making it easier to compare your results against previous periods or even other companies in your industry. Understanding this concept is the first step toward building a solid financial foundation for your business.
The main idea behind revenue recognition is to connect the revenue you record directly to the value you provide to your customers. The principle states that you should only recognize revenue when you have satisfied a "performance obligation"—a term for delivering the promised goods or services. This means revenue is officially earned when the customer gains control of that good or service, not necessarily when they pay for it.
This distinction is critical. For example, if a customer pays you upfront for a one-year software subscription, you can't record all of that cash as revenue in the first month. Instead, you would recognize one-twelfth of the total revenue each month as you deliver the service over the year. This method provides a much more accurate picture of your company's ongoing financial performance.
Proper revenue recognition is the bedrock of trustworthy financial reporting. When you follow the rules correctly, your income statement, balance sheet, and cash flow statement all present a true and fair view of your company's health. This accuracy is essential for making smart business decisions, securing loans, and attracting investors. For private companies, in particular, how you report revenue can significantly impact your financial statements and overall valuation.
Inaccurate revenue reporting can lead to restated financials, which can damage your company's reputation and lead to serious compliance issues. On the other hand, consistent and accurate reporting builds confidence and provides the clarity you need to plan for growth. It ensures that the revenue you report reflects the actual economic substance of your customer contracts, giving you a reliable measure of your success.
To create more consistency across all industries, the Financial Accounting Standards Board (FASB) introduced a new standard called Accounting Standards Codification (ASC) 606. This standard provides a single, clear framework for recognizing revenue from all customer contracts, replacing the patchwork of industry-specific rules that existed before. The goal was to make revenue recognition more straightforward and comparable, whether you're selling software, building houses, or offering professional services.
ASC 606 introduced a five-step model that guides businesses through the process of identifying contracts, pinpointing obligations, determining prices, and recognizing revenue at the right time. While it created a more uniform approach, it also introduced new complexities, especially for businesses with subscription models or bundled services. Adapting to this standard is a crucial step for any modern business looking to maintain compliance and achieve financial clarity.
The ASC 606 standard gives us a clear, five-step framework for recognizing revenue. Think of it as a universal guide designed to make financial reporting more consistent and transparent across all industries. Following these steps ensures you record revenue in a way that accurately reflects the value you’ve delivered to your customers. While the process sounds linear, the details can get complex, especially for businesses with subscription models, multi-part contracts, or variable pricing.
Getting a handle on this model is the first step toward mastering your revenue accounting. It breaks down a potentially overwhelming task into manageable stages, from identifying the initial agreement to finally recording the revenue in your books. Each step builds on the last, creating a logical flow that helps you avoid common pitfalls and maintain compliance. For a deeper look into financial best practices, you can find more insights on the HubiFi blog. Understanding this process is key to creating financial statements that you, your investors, and your auditors can trust.
Before you can recognize any revenue, you first need to confirm you have a contract with your customer. This doesn't always mean a formal, ink-signed document. A contract can be written, verbal, or even implied by your standard business practices. The key is that both you and your customer have agreed on the terms and are committed to fulfilling your respective obligations.
According to accounting standards, a contract is only valid if it has commercial substance and it's probable you'll collect the payment you're entitled to. This means you need to be confident that the agreement will impact your future cash flows and that your customer is able to pay. This first step sets the foundation for the entire revenue recognition process.
Once you have a contract, the next step is to identify your specific promises to the customer. These promises are known as "performance obligations." A performance obligation is a distinct good or service (or a bundle of them) that you've agreed to provide. For example, if you sell a software subscription that includes installation and training, you might have three separate performance obligations: the software license, the installation service, and the training session.
Clearly defining each obligation is critical because it dictates when you can recognize revenue. You’ll recognize revenue for each distinct promise as you fulfill it. This step requires you to carefully analyze your contracts to separate bundled items into individual deliverables.
Now it's time to figure out the transaction price. This is the total amount of compensation you expect to receive from the customer in exchange for fulfilling your end of the deal. It sounds simple, but the transaction price isn't always just the sticker price. You need to account for any variable considerations that could affect the final amount.
This includes things like discounts, rebates, refunds, credits, or performance bonuses. If the price is subject to change, you have to estimate the most likely amount you'll receive. This step can be particularly challenging for businesses with complex pricing structures, but getting it right is essential for accurate reporting. If you're struggling with this, you can always schedule a demo to see how automation can help.
After determining the total transaction price, you need to allocate it across all the separate performance obligations you identified in Step 2. The goal is to assign a portion of the total price to each distinct good or service based on its standalone selling price—what you would charge for that item on its own.
For instance, if your software, installation, and training package costs $5,000, you can't just split it three ways. You need to determine the individual value of the software license, the installation service, and the training. This allocation ensures that you recognize the appropriate amount of revenue as each specific obligation is met, rather than recognizing the full amount all at once.
This is the final and most important step: actually recognizing the revenue. You can record revenue only when (or as) you satisfy a performance obligation by transferring control of the promised good or service to the customer. "Transfer of control" means the customer can now direct the use of and obtain substantially all the remaining benefits from that item.
This can happen at a single point in time, like when a product is delivered, or over a period of time, as with a year-long service contract. This is where automated systems truly shine, as they can connect with your other platforms through seamless integrations to track fulfillment and trigger revenue recognition at precisely the right moment.
The five-step model provides a solid framework, but applying it in the real world often brings a few curveballs. Many businesses find that their contracts and pricing structures don’t fit neatly into simple boxes. Getting revenue recognition right means facing these complexities head-on with a clear strategy.
From tangled contract terms to ever-changing agreements, several common hurdles can trip up even the most diligent finance teams. Understanding these challenges is the first step toward building a process that is both compliant and efficient. Let’s walk through some of the most frequent issues you might encounter and how to think about them.
Modern business deals are rarely straightforward. A single contract might include multiple products, services, and ongoing support, each with its own delivery timeline. The challenge is to correctly identify every distinct performance obligation within that agreement. According to the guidance on ASC 606 for private companies, this process requires a careful review of contract terms and transaction data. For businesses with high sales volume, manually dissecting every contract is not only time-consuming but also prone to error. It’s essential to have a system that can consistently parse these details to ensure revenue is recognized at the right time for each separate obligation.
Does your pricing include discounts, rebates, performance bonuses, or other incentives? If so, you’re dealing with variable consideration. This is one of the trickiest areas of revenue recognition because it involves making estimates. You need to predict the final transaction price based on the most likely outcomes. The rule of thumb is to only include revenue from these estimates if it's highly probable that you won't have to reverse it later. This requires sound judgment and a reliable method for forecasting, especially in industries where pricing changes frequently based on usage or other factors.
It’s a fundamental question: are you the principal provider of a good or service, or are you an agent arranging for another party to provide it? The answer determines whether you recognize the gross amount of the sale or just your commission as revenue. The key distinction comes down to control. Do you control the good or service before it is transferred to the customer? For example, if you run an online marketplace, you are likely an agent for the third-party sellers on your platform. Getting this distinction wrong can lead to a significant misstatement of revenue on your financial statements.
Contracts are often living documents. Customers upgrade their subscriptions, add new services, or change the scope of a project. Each of these changes is a contract modification that needs to be accounted for. Sometimes a modification is treated as a separate contract, while other times it changes the accounting for the original one. This can alter historical revenue patterns and create a lot of administrative work. Without a flexible system that allows for seamless integrations between your CRM and accounting software, managing these ongoing changes can quickly become a major headache and compliance risk.
Getting the numbers right is only half the battle. ASC 606 also comes with extensive disclosure requirements. You need to provide clear, detailed notes in your financial statements that explain how you arrived at your revenue figures. This includes breaking down revenue into meaningful categories, providing information on your contract balances, and explaining the significant judgments and estimates you made along the way. The goal is to give investors, auditors, and other stakeholders a transparent view of your revenue streams. If you need help ensuring your disclosures are audit-proof, you can always schedule a demo with an expert.
Revenue recognition isn't a one-size-fits-all process. While the five-step model provides a universal framework, how you apply it depends heavily on your industry. The nature of your contracts, the way you deliver value, and your customer relationships all create unique scenarios that require careful interpretation. A simple product sale is worlds away from a multi-year software subscription or a large-scale construction project, and your accounting needs to reflect that reality.
Understanding these distinctions is the first step to getting compliance right and building a financial reporting process you can trust. It’s about moving beyond the general rules and seeing how they apply to your specific business model. For high-volume businesses, these nuances can have a massive impact on financial health, influencing everything from cash flow projections to investor confidence. Getting it wrong can lead to restated financials and audit headaches, while getting it right provides a clear, accurate picture of your company's performance. Let's look at how revenue recognition plays out across a few key industries.
The shift to ASC 606 was particularly transformative for software and SaaS companies. If you're in this space, you're likely juggling contracts that bundle multiple services—like the software license, implementation fees, customer support, and training. Under ASC 606, you can't just recognize the full contract value upfront. Instead, you have to identify each of these as a distinct performance obligation and allocate a portion of the transaction price to each one. Revenue is then recognized as each obligation is fulfilled, which for a subscription, often means recognizing it ratably over the life of the contract. This requires a sophisticated system to track deliverables and manage complex revenue streams accurately over time.
Long-term projects are the name of the game in construction and real estate, which means you're dealing with some of the most complex revenue recognition scenarios. Because contracts can span months or even years, revenue is typically recognized over time as work is completed, not in a lump sum at the end. This often involves using a method like the percentage-of-completion model. The challenge lies in accurately measuring progress toward completion, which can be based on costs incurred or units delivered. These industries face trickier rules that demand meticulous tracking of contract modifications, material costs, and labor to ensure revenue is recognized in the correct period.
If your business provides professional services—like consulting, marketing, or legal advice—your contracts are often built around specific outcomes or deliverables. Revenue recognition here hinges on identifying your performance obligations correctly. Sometimes, you might recognize revenue as you hit certain project "milestones," which are treated as distinct obligations being fulfilled. In other cases, you might be providing a continuous service over a set period, meaning you'd recognize the revenue on a straight-line basis. The key is applying professional judgment to determine whether your services are distinct or part of a single, ongoing obligation. Getting this right ensures your financial statements accurately reflect the value you've delivered to your clients at any given point.
It’s a common misconception that manufacturers and retailers have it easy with revenue recognition. While a simple cash-and-carry sale is straightforward, many situations are more complex. Think about warranties, customer rebates, rights of return, and installation services. Each of these can be a separate performance obligation with its own portion of the transaction price. For example, an extended warranty is often treated as a separate service, with revenue recognized over the warranty period. Many manufacturing revenue streams require a closer look to ensure every component of the sale—from the product itself to the promises made alongside it—is accounted for correctly under ASC 606.
Staying compliant with ASC 606 can feel like a moving target, but it doesn’t have to be a source of stress. Think of it less as a rigid set of rules to follow and more as an opportunity to build a resilient financial foundation for your business. When you have solid processes in place, you can close your books faster, face audits with confidence, and make smarter strategic decisions backed by accurate data. The key is to move beyond a one-time implementation project and adopt practices that make compliance a natural, ongoing part of your operations. It’s about building financial muscle memory for your entire organization.
Getting this right involves more than just your accounting team; it requires a company-wide commitment to clarity and consistency. From the way your sales team structures contracts to how your operations team reports on deliverables, every step matters. By focusing on clear documentation, strong internal systems, and the right technology to connect the dots, you can transform compliance from a chore into a strategic advantage. Here are five essential practices to help you maintain ASC 606 compliance and keep your financial reporting accurate, reliable, and ready for anything.
Think of your documentation as the story of your revenue. It needs to be clear, detailed, and easy for an auditor—or anyone on your team—to follow. Proper documentation is essential for showing how you’ve applied the five-step model to your contracts. This means keeping meticulous records of customer agreements, how you identified each performance obligation, and the methods used to determine and allocate the transaction price. A complete and organized paper trail is your best defense in an audit and a critical part of a practical guide to ASC 606. It ensures every figure on your financial statements is backed by sound logic and evidence.
Because ASC 606 is principles-based, it requires you to make judgments and estimates, especially around variable consideration and standalone selling prices. This is where strong internal controls come in. You need to establish a framework of review and approval to ensure consistency and accuracy in these judgments. For example, who has the final say on a transaction price? What's the process for reviewing contract modifications? Strengthening your internal controls reduces the risk of errors and provides assurance that your financial reporting is reliable. It’s about creating a system of checks and balances that supports consistent application of the standard across your company.
Revenue recognition is a team sport. Your sales team structures the deals, your operations team delivers on the promises, and your finance team records it all. If these departments aren't on the same page, compliance can quickly fall apart. Implementing a systematic approach starts with making sure everyone understands their role in the process. Provide regular training on the nuances of ASC 606, focusing on how it impacts each department's daily work. When your sales team understands what makes a performance obligation, they can write clearer contracts. When your whole team is educated, you create a culture of compliance that protects your business.
Manually tracking complex contracts and revenue schedules in spreadsheets is not only tedious but also incredibly risky. A single formula error can have significant consequences for your financial reporting. This is where technology becomes a game-changer. The right revenue recognition software automates the five-step process, from allocating transaction prices to recognizing revenue as obligations are met. By leveraging automation, you can streamline compliance, reduce the chance of human error, and gain real-time visibility into your financials. Look for solutions that offer seamless integrations with your existing CRM and accounting systems to create a single source of truth for your revenue data.
Your business isn't static, and neither are accounting standards. As you launch new products, enter new markets, or change your contract terms, your revenue recognition policies may need to adapt. It's also important to stay informed about any clarifications or updates from the Financial Accounting Standards Board (FASB). Establishing a regular review process helps you stay ahead of these changes. Schedule quarterly or annual meetings to assess your current policies, review new and unusual contracts, and ensure your methods still align with the new revenue recognition standard. This proactive approach ensures ongoing compliance and prevents small issues from becoming major problems.
Putting a formal revenue recognition system in place is a game-changer for accuracy and efficiency. It’s about more than just adopting new software; it’s about building a reliable process that supports your growth. A solid system ensures you’re compliant, gives you a crystal-clear view of your financial health, and frees up your team to focus on strategy instead of spreadsheets. Getting it right involves choosing the right technology, automating your workflows, and committing to ongoing maintenance.
As your business grows, trying to manage revenue recognition with spreadsheets becomes risky and time-consuming. The right software is essential for keeping everything straight. Look for tools specifically designed to handle the complexities of ASC 606, as they can help automate the process of recognizing revenue according to accounting standards. Your ideal solution should be scalable enough to grow with you and user-friendly enough for your team to adopt without friction. Most importantly, it needs to integrate smoothly with the other software you already use. Finding a platform that ticks these boxes will set a strong foundation for your entire revenue process.
Once you have the right tools, the next step is to let them do the heavy lifting. Automation is your best friend when it comes to revenue recognition because it drastically reduces the chance of human error. An automated system handles the complex calculations and allocations for you, ensuring every transaction is recorded accurately and in line with ASC 606. This means your finance team can stop spending hours buried in manual data entry and reconciliation. Instead, they can use that time for more valuable work, like analyzing financial trends and planning for the future. For high-volume businesses, automated revenue recognition isn't just a nice-to-have—it's a must.
Your revenue recognition system shouldn't operate in a vacuum. To get the most out of it, you need to integrate it with your other key business platforms, like your CRM and ERP. Connecting these data sources gives you a complete, 360-degree view of your company’s financial performance. This integrated approach is key for ASC 606 compliance, which requires careful tracking of contract terms and transaction data. With seamless integrations, you can perform dynamic customer segmentation, generate more accurate forecasts, and make smarter, data-driven decisions that guide your business forward.
ASC 606 is a principles-based standard, which means it requires judgment and estimation, not just rigid rule-following. Because of this, compliance isn't a one-time setup; it's an ongoing effort. Contracts get modified, pricing models change, and your business evolves. Your system and processes need to be flexible enough to keep up. Schedule regular reviews of your revenue recognition policies to ensure they still align with your current business practices. This proactive monitoring helps you catch potential issues early and ensures your financial statements remain accurate and compliant over the long term.
Implementing a new system is just the beginning. To ensure it remains a valuable asset, you need a plan for its long-term care and maintenance. This includes performing regular software updates, refining workflows as your business needs change, and providing ongoing training for your team. Designate who is responsible for overseeing the system and for getting new hires up to speed. A well-maintained system ensures you can consistently recognize revenue when goods or services are delivered. If you need guidance on setting up a sustainable process, you can always schedule a demo with an expert to walk you through it.
Revenue recognition can feel like a puzzle, and a few common myths often make it harder to solve. If you've ever felt a little fuzzy on the details, you're not alone. Many of the old "rules of thumb" about accounting for revenue no longer apply under ASC 606, and it's easy to get tripped up. Let's walk through some of the most persistent misconceptions and clear the air so you can handle your finances with confidence. We'll break down the difference between revenue and cash, what really counts as a performance obligation, how to nail the timing, and what to do with tricky variable payments.
It’s one of the most common mix-ups: confusing the cash in your bank account with the revenue on your books. While they’re related, they are not the same thing. The core principle of modern revenue recognition is that you record revenue when you earn it, not necessarily when you get paid. Some believe revenue is tied to cash flow, but it's actually connected to the delivery of your goods or services. Think about a yearly software subscription. A customer might pay you for the full 12 months upfront. You’ve received the cash, which is great for your cash flow, but you haven’t earned it all yet. You’ll earn it bit by bit each month as you provide the service. So, you would recognize 1/12th of that total payment as revenue each month for the entire year. This distinction is fundamental to ASC 606 compliance.
The term "performance obligation" sounds like technical jargon, but it’s just a promise in a contract to provide a distinct product or service to a customer. Identifying these correctly is a huge deal because it dictates when you can recognize revenue. Getting this wrong can throw off your entire financial picture. For example, if you sell a piece of equipment that also includes installation and a one-year maintenance plan, you likely have three separate performance obligations. You can't just lump them all together and recognize the full amount when the contract is signed. You’d recognize revenue for the equipment when it’s delivered, for the installation when it’s complete, and for the maintenance plan over the course of the year. Accurately tracking these distinct deliverables is where having the right data integrations becomes essential.
So, when is the exact moment to recognize revenue? The rule is to do it when you transfer control of the goods or services to your customer. This is the heart of the five-step model. "Control" means the customer can direct the use of and obtain substantially all of the remaining benefits from the asset. It’s less about when you sent the invoice and more about when the customer truly has what they paid for. For a physical product, this is often straightforward—it’s when the customer takes possession of the item. For services or subscriptions, it happens over time as the service is rendered. This principle ensures your financial statements accurately reflect the value you’ve delivered during a specific period, which is a key challenge for many subscription businesses.
Contracts often include elements that can make the final price change, like performance bonuses, discounts, rebates, or penalties. This is called "variable consideration," and it adds a layer of complexity. You have to estimate the amount you expect to ultimately receive. However, there’s a catch: you can only include this estimated amount in your transaction price if it's highly probable that you won't have to make a significant reversal later. This constraint prevents companies from overstating revenue based on optimistic projections. For instance, if you offer a volume discount, you need to estimate how many customers will actually meet the threshold. This requires solid data and careful judgment. If these scenarios sound familiar, it might be time to schedule a consultation to see how automation can handle these calculations for you.
Getting revenue recognition right consistently requires more than just a solid grasp of the rules—it demands the right technology. While manual spreadsheets might work in the very beginning, they quickly become a source of errors and inefficiencies as your business grows. Relying on the proper tools not only ensures compliance but also frees up your team to focus on strategic financial analysis instead of tedious data entry. The right tech stack can transform revenue recognition from a complex chore into a streamlined, automated process that provides valuable insights into your business's health.
These systems are designed to handle the complexities of ASC 606, giving you a clear path to accurate financial reporting. When you have the right tools in place, you can close your books faster, pass audits with confidence, and make smarter decisions based on real-time data. Let's explore the essential components of a modern revenue recognition toolkit.
Your general accounting software is the foundation of your financial operations. Platforms like QuickBooks or NetSuite are excellent for managing day-to-day bookkeeping, invoicing, and payroll. When it comes to revenue recognition, this software serves as the system of record for your core financial data. However, many standard accounting platforms lack the specialized functionality to handle complex revenue scenarios under ASC 606, such as multi-element arrangements or variable consideration, without significant manual workarounds. That’s why it’s crucial that your accounting software can connect with more specialized tools. The ability to create seamless integrations is key to building a robust and automated financial ecosystem.
This is where the magic happens. Automated revenue management systems are purpose-built to handle the five-step model of ASC 606. These platforms connect to your CRM, billing, and accounting software to pull in contract and sales data automatically. They then apply the correct revenue recognition rules to each performance obligation, calculating and posting journal entries without manual intervention. This automation drastically reduces the risk of human error and saves your finance team countless hours each month. For high-volume businesses, these systems are not just a convenience—they are a necessity for scaling efficiently and maintaining compliance. Seeing how this works firsthand can be a game-changer; you can schedule a demo to understand the impact on your workflow.
Compliance is critical, but the data generated from revenue recognition is also a strategic asset. Powerful analytics platforms help you make sense of it all. These tools provide dashboards and reports that offer a clear view of your revenue streams, deferred revenue, and key performance indicators. According to guidance from Deloitte, companies must share clear information in their financial reports so people can understand how revenue is earned. Good analytics platforms make this possible by allowing you to segment data dynamically, forecast future revenue, and identify trends. This visibility empowers your leadership team to make informed, data-driven decisions that guide the company forward.
While related to automation, dedicated compliance tools focus specifically on keeping you audit-ready at all times. These tools are designed to create a clear, traceable audit trail for every transaction, from the initial contract to the final revenue entry. They help you maintain meticulous documentation and generate the detailed disclosure reports required by ASC 606. By using a tool built for compliance, you can ensure every calculation is defensible and every report is accurate. This provides peace of mind during an audit and reinforces investor confidence. Investing in the right tools is an investment in the financial integrity and stability of your business.
My business is still small. Do I really need to worry about ASC 606? Yes, absolutely. While it might seem like a concern for large corporations, the principles of ASC 606 apply to any business that has contracts with customers, regardless of size. Getting your revenue recognition process right from the start builds a strong financial foundation that will support you as you grow. It ensures your financial statements are accurate, which is critical if you ever plan to seek a loan, bring on investors, or eventually sell your company. Starting with good habits now saves you from a massive cleanup project down the road.
What's the real risk of getting revenue recognition wrong? Getting it wrong can create significant problems. On a practical level, it means your financial statements don't reflect the true performance of your business, which can lead you to make poor strategic decisions. Externally, it can lead to restated financials, which seriously damages your credibility with investors, lenders, and auditors. This can result in compliance penalties, loss of funding, and a damaged reputation. In short, accurate revenue recognition is the bedrock of financial trust.
Can I just manage this with spreadsheets instead of buying special software? You can try, but I strongly advise against it, especially as your business grows. Spreadsheets are prone to human error—one broken formula or copy-paste mistake can throw off your entire financial picture. They also become incredibly cumbersome and time-consuming when you're dealing with complex contracts, multiple deliverables, or subscription changes. Automated software is built to handle these complexities, reduce risk, and give you back valuable time to focus on analyzing your business instead of just inputting data.
My contracts often change after they're signed. How does that affect revenue recognition? Contract modifications are a common challenge, and ASC 606 has specific guidance for them. When a contract changes—for example, a customer upgrades their plan or adds a new service—you have to account for it. Sometimes the change is treated as a brand new contract, while other times it modifies the accounting for the original one. This is another area where manual tracking becomes a major headache. A good revenue recognition system can handle these modifications seamlessly, adjusting the revenue schedule automatically to keep you compliant without the administrative burden.
What's the first practical step I should take to improve my company's revenue recognition process? A great first step is to conduct a review of your current contracts. Pick a few representative examples and walk them through the five-step model described in the post. Try to identify each distinct performance obligation and determine how you would allocate the price. This hands-on exercise will quickly reveal where your current process might have gaps or where the complexities lie. It gives you a clear, tangible understanding of what you need to solve for, whether that's through better internal processes or new technology.
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.
Copyright © 2025 HubiFi | All rights reserved.
