Revenue recognition requirements, which are vital to financial statement users, provide that revenue be recognized on the income statement in the period control over promised goods or services is transferred to customers. However, most business contracts today aren’t set up so simply and require companies to exercise significant judgment to determine when to recognize revenue.
Revenue recognition errors are among the top reasons for financial statement restatements. Because of the complexity in some contracts with customers, applying U.S. generally accepted accounting principles (GAAP) can be prone to errors.
Whether working through complicated customer contracts or helping companies level up the sophistication of their revenue recognition processes, policies, and controls, Crowe specialists have a solid approach for reporting and accounting excellence.
Get the help you need and create a solution that works for your organization.
Our professionals are ready to help you and your team resolve complex revenue recognition matters, establish workable processes, and produce audit-ready deliverables. They focus on four key questions:
We start by learning about your various revenue streams, asking questions and gaining perspective on any nuances unique to your company.
We help you navigate the revenue recognition guidance to determine when revenue should be recognized for each revenue stream.
With compliance accounted for, we then focus on developing sustainable and repeatable processes for recognizing revenue, which is key to operational success.
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Solving complex, interconnected accounting challenges is what we do. Let our specialized knowledge and resourceful guidance help you focus on your business.
Accurate financial reporting, including revenue recognition, is critical for all stakeholders in your company. Our team can help achieve accuracy in reporting revenue in your financial statements.
Successful transactions rely on an accurate depiction of your target’s revenue recognition policies and accounting. Our integrated, insightful, and strategic approach can help you work through your deal with confidence.
We can support your business in building and maintaining a robust internal control environment and in mitigating risks and identifying opportunities for greater efficiencies across your organization.
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Whether you are preparing for an acquisition or going public, realizing your controls are not as effective as they should be, or being audited for the first time, Crowe can help with industry-specific specialization and deep technical expertise.
Through close collaboration with our national office, our team is equipped to offer the right technical guidance for accurate reporting.
Regardless of where you are in your revenue recognition journey, we can help. We look forward to assisting you.
A primary cause of financial statement restatements is errors in revenue recognition. Contact us to learn how Crowe specialists can help your company.