How Much to Invest in 606

Originally published in April 2021 on LinkedIn.

Impact of ASC606 revenue recognition on a company's fundamental operating cash flows:

-zero-

This amount should serve as a target for how much investment a company makes in new systems and personnel to manage it.

Keep your eye on the ball- professional services and technologies drive sustainable profitability, not temporary shifts in accounting "profits" from reimbursable expenses.