Originally posted on ey.com.
SaaS companies are staring down the 2018 deadline to implement the new Revenue Recognition Standard (ASC 606). According to the recently released EY Revenue Recognition Survey, 85% of CIOs believe the IT team is providing the support and skills needed to meet these standards, but only 60% of CFOs agree. Although this survey references public companies, we've seen that SaaS business are trending the same way. In our webinar earlier this year, we surveyed attendees on their preparedness to adapt to the new revenue recognition standard and 47% said they have not taken steps to identify how the new standard will affect their GAAP financials.
Another statistic from EY's article is that 48% of surveyed companies are hiring more people and 40% are making extensive use of consultants to address how the new standard may impact their business. For a growing and evolving SaaS business, hiring additional headcount or consultants is not always an option. Cash is going towards goals to grow the product and drive the go -to-market strategy.
Click here to read the full article on EY.com
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