The accelerated pace of changes proposed by the Financial Accounting Standards Board (FASB) and International Financial Reporting Standards (IFRS) are placing increased pressure on accounting teams to ensure that they, and the rest of their organization, are staying up-to-date. The global convergence of accounting standards increases the importance of understanding not only the technical details, but also how to implement these practices and the implications they have on technology.
Changes in accounting regulations often require adjustments to systems, processes, security controls, business practices and contracts, and effective accounting departments will want to consider each of these factors when analyzing the effects of the changes on the organization.
The new revenue recognition standard may have a significant impact on how some software accounts for revenue.
Basic accounting systems may not have the necessary functionality to allocate revenue to performance obligations on a relative estimated selling price as required by the new standard, and therefore, are forcing some companies onto a solution that accommodates deeper functionality.
No other accounting solution keeps up with these changes better than Microsoft Dynamics GP, and for a number of reasons:
- GP implements the change for you. With built-in compliance rules, GP makes it extremely difficult to make mistakes that can harm your regulation compliance.
- GP is updated and released every 6 months, which includes compliance updates. These frequent updates ensure that compliance functionality within GP is never outdated.
- GP can be deployed in days or weeks, rather than months or years. Your organization can get up to speed with the proper accounting practices sooner, rather than later.
- GP provides role-based security. Based on the employee’s role, you can choose what functionality is available to them. This can be configured according to your desired accounting practices.
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Read the full article on these accounting changes at Financial Executives International (FEI)