FloQast has added multi book accounting capabilities to its month-end financial close solution to help companies achieve compliance with the new accounting standard for revenue recognition, ASC 606. The new rule will go into effect Jan. 1, 2019 for private companies and already applies to public companies.
The multi book accounting feature is meant to help organizations maintain dual reporting on revenue and expenses allocated according to two sets of rules, which is required by ASC 606.
Capabilities supported by the new feature include:
- Automation of manual processes: Accountants and finance professionals can reallocate revenue and expenses to see and understand the impact of the new rules without extra work.
- Improvement of business insight: Users get a clear picture of how subscription revenue and expense allocations will impact the business.
- Audit readiness: Auditors can see a clear trail of revenue, and don’t have to go to controller to determine how lump sums of revenue are broken out.
Both public and private companies are required to make the switch to ASC 606 and IFRS 15, which will have a significant impact on companies that provide their services on a subscription basis. During this time of transition until the standards come into effect, companies must report in parallel, which could duplicate the efforts and time needed to record transactions. FloQast’s multi book accounting capabilities target this problem, allowing teams to prepare and abide by the rules automatically and without manually tracking and creating separate journal entries that may require in-depth explanation come audit time, the company says.
“ASC 606 is a major change to how companies recognize revenue and expenses, placing a new burden on accounting teams,” said Mike Whitmire, CPA, CEO and co-founder of
Multi book accounting is available today for Oracle NetSuite and Sage Intacct ERPs and is included at no extra charge in FloQast Business, Corporate and Enterprise subscription plans. To learn more, visit
