Majority of CFOs Haven’t Started New Revenue Recognition Efforts Yet

The deadline for companies to adopt the new revenue recognition standard is still more than a year away, and recent research suggests many firms will be using all the time allowed to make the transition. In the Robert Half Management Resources survey, 64 percent of chief financial officers (CFOs) said they plan on adopting the new rules just-in-time. In addition, the majority of CFOs, 59 percent, have not started the diagnostic work to determine how much effort will be required for them to be ready to make the transition.

“While the first adoption date for the new revenue recognition standard is more than a year out, firms should be determining the work that will be involved with the transition and avoid delaying their efforts,” said Paul McDonald, senior executive director for Robert Half. “Complying with the new rules is a massive change-, project- and staff-management effort affecting nearly all parts of the business, from accounting and finance to sales, human resources, information technology, legal, training and communications.”

McDonald added assessing their employees’ capabilities around compliance with the standard is one of the first steps companies should complete. “Firms need professionals who can help with areas ranging from systems and controls to processes and policies. Many organizations will likely find they need to rely on a mix of current full-time personnel and outside experts.”