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tech teams rush to catch up as new accounting rule looms

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tech teams rush to catch up as new accounting rule looms

by june 5, 2017 5:30 a.m. et a major accounting rule change is stressing finance staff and creating headaches for technology departments at some of the world’s largest businesses.public companies like verizon communications inc., vz 0.02%hortonworks inc. hdp -0.33% and workday inc. wday -0.61% are facing higher costs as they spend months to comply with a new rule that will change how they book revenues.for large corporations, the task is arduous and complicated: accountants are scouring thousands of bills and contracts to determine if they must change how they book the sales for fiscal years beginning after dec. 15.meanwhile, tech departments are writing new code, upgrading their systems and investing in expensive new software as they work to ensure their increasingly automated finance operations can keep up.it’s not clear all of them can.almost a third of 300 finance and technology executives surveyed in march by ernst & young llp said they are at risk of lagging behind in their rush to comply with the new revenue recognition rules. more than a fifth were concerned their finance and tech upgrades wouldn’t be complete by the end of the year, leaving only a partially functioning system in place, requiring manual workarounds.“companies are finding it is very difficult to translate accounting rules from the new standard into usable business requirements,” said john mcgaw, a partner wi...