Revenue Recognition: Does Your Company Have It Right?
Revenue is a key process for every business. Whether you produce a product or deliver a service, you need a solid, reliable process for collecting, recording and managing revenue. Most pre-IPO companies realize the need for consistent, reliable revenue recognition, and they are not going public until they get it. Having established a process, assigned roles and responsibilities, and set up the general-ledger codes, many companies still find a significant number of revenue transactions are dealt with by exception. Such transactions generally demand a greater level of manual effort, circumvent routing controls and require individual assessment in order to establish compliance with GAAP.