Order to cash and revenue recognition automation

Navigate your company's journey

Deloitte helps clients navigate operationalizing processes as it relates to Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”), including:

• Dealing with changes in revenue recognition driven by new offerings, new sales channels, acquisitions or dispositions, etc.
• Addressing revenue recognition as part of a larger finance transformation project or large-scale technology implementation like a new ERP.
• Optimizing activities for long-term process sustainability and more efficient workflows.

How do you get started on the journey?

To get started with streamlining the revenue recognition process, Deloitte’s approach begins by conducting a comprehensive assessment of your current processes to identify inefficiencies, identify gaps, and create a plan that helps your company move forward depending on your budget and complexity. A target future state model can identify quick wins, prioritized solutions, and ‘no regret’ steps forward. Develop a target future state model that emphasizes connectivity, collaboration, and transparency, aiming to save time and reduce costs. 

• Increase system integration to minimize manual interventions and enhance accuracy and implement automation tools to handle revenue recognition and order to cash processes.
• To mitigate risks, it is crucial to develop global standardized policies and procedures and establish data consistency with a common information model. Additionally, creating accountability mechanisms for root cause analysis and error correction, particularly in billing and dispute management, will enhance process reliability.
• Engaging professionals with experience in leveraging their deep technical accounting knowledge to operationalize the accounting requirements leveraging strategic alliances with enterprise level technology providers will bring the necessary expertise and tools to your organization.
• Implement project governance, establishing necessary controls, and continuously monitoring and adjusting the processes will ensure ongoing efficiency and effectiveness.

Why is this important to your company?

Streamlining the revenue recognition process is important for companies to keep up with growth, changing revenue structures, and evolving market demands. The complexity of ASC 606 and constrained resources can pose significant challenges, making it essential to revisit people, processes, and technology capabilities. By simplifying, standardizing, and automating these processes, companies can reduce the risk of errors, optimize reporting, and utilize data-driven insights to drive strategic decisions. This not only ensures compliance but also enhances overall operational efficiency and effectiveness.

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