Innovative Tax Strategies for Manufacturers and Distributors

Accurately recognizing revenue is vital to a company’s performance and success. The new ASC 606 standard has changed the rules on the way revenue is recognized. Its impact is far reaching across industry and business size.

The new regulation has implications for the entire contract cycle of a business and will be felt by various departments, not just accounting.

Compliance, while frustrating and time consuming, is necessary for your business.

Five Components Required for Revenue Recognition
There are five components required in the new revenue recognition standards. These include:

  1. Identifying the contract with a customer
  2. Identifying the performance obligations in the contract
  3. Determining the transaction price
  4. Allocating the transaction price to the performance obligation in the contract
  5. Recognize revenue when (or as) the entity satisifies a performance obligation

A Resource to Help You Navigate the Revenue Recognition Guidance
We’ve developed an eBook to help you navigate the waters of revenue recognition and how it can be applied to your business.

Check out Five Steps to Understanding the New Revenue Recognition Standards. In it you’ll find:

  1. An explanation of the changes between the old and new rules
  2. A 5-step process to help you implement the regulation
  3. To-Do’s and next steps for your company

Ready to get started?

Fill out the form to flip through the ebook or download it for easy access later.

Revenue recognition is a critical standard that will take time to implement at your organization. There’s a lot to consider:

  • Contracts may need to be modified
  • Loyalty programs may need to be reviewed
  • Information gathering processes will need to be developed
  • Customer credits may need to be reassessed

Taking steps to remain compliant now will be incredibly important. We have a team ready to help you implement the new revenue recognition standard at your organization.


5-step Infographic

  • Need a high level overview of the steps to understanding revenue recognition? Download the infographic for easy access.

Want More Information?

Andrea B. Mouw
Andrea Mouw, JD, CPA
Partner-in-Charge of Accounting Methods & Periods, National Tax Office
Scot R. Phillips
Scot Phillips, CPA
Partner-in-Charge of National Assurance Office

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