New accounting rules as of December are changing how companies account for revenue from services and sales. These changes were in the works for over a decade and situate the U.S. closer to international guidelines. For multi-entity and especially international companies, these changes can only benefit the bottom line and simplify accounting processes.
The new policies lead to an obvious change in how businesses conduct their operations so they remain compliant with current regulations. This also leads, in some cases, to increased expenses–upwards of $1 million for some–in the compliance measures.
One change with these regulations is that companies must more thoroughly account for costs related to sales, including discounts, marketing efforts, and more. This is understandably altering how some businesses provide and account for subscription-based sales. While some companies believe these regulations will ultimately increase their revenues, others aren’t so sure.
Some companies are communicating the new regulations with their investors to be transparent on how their finances may be affected in the future, while still others are opting to change their business operations wherever possible, rather than their expected revenue forecasts.
How Flexi keeps you compliant
At Flexi, we understand that regulations are always changing and evolving, and software should help keep you compliant no matter what industry your business operates within.
Through our secure, enterprise platform, Flexi automates the entire accounting workflow process and delivers ROI in months. As a result, your finance team can expect to spend far less time on the close, consolidation, and reporting processes and more time being strategic and proactive.
With Flexi, you won’t be stuck with a costly system that leaves you unable to adapt to changing market or business needs. Flexi offers extreme flexibility in every way, including flexibility with a changing marketplace and changing regulatory needs. From deployment options, implementation and setup of business rules, to integrations with other systems, Flexi has got you covered.
With Flexi, you can expect a complete audit trail and compliance documentation, among many other benefits. Flexi provides immediate access to all details behind a transaction. Because each accounting module is part of the same system (including our general ledger), you can easily drill down into all transactions and trace all the way back to the original journal entries, including a visual map of the workflow and approvals.
Learn more about Flexi’s solutions today. Call 800-353-9492.