Daylight Savings: Bet You Thought This Article Would be About a Q4 Promotion

     Daylight savings is this weekend and don’t worry, this article is not some cheap word play on the word ‘savings.’

 

     Do we save money and time for our clients?

 

     Of course, that is why you get ProRata.

 

     Is that what this article is about?

 

     No. We respect our readers.

 

     Time to understand this whole 2018 GAAP Compliance. Its scaring the daylights out of people. We’re getting calls.

 

     Let’s fall back on the literature and shed some light on why automating revenue recognition or at the very least getting a CPA to make sure you are absolutely compliant.

 

     The GAAP rules for 2018 have shifted and here are the area you need to look up if it is relevant to your business:

              -As of December 15, 2018, everyone is to be following FASB regulated guidelines (not

               just public companies)

              -SaaS companies will likely be required to make an estimate of “variable consideration”

             including any contingent usage fees or royalties (if you have contingent fees above and

             beyond the usual SaaS business, make sure to go to the FASB website)

               -Keep an eye out for distinct performance obligations as accounting units within a

               customer contract have changed for specific types of obligations (if you have obligations

                above and beyond the usual SaaS business, make sure to go to the FASB website)

               -Anything not covered by the standards previously that one would normally be at the

               company’s disgression must now be reported to standard

     The last three points specifically affects SaaS companies, otherwise it is business as usual. Overall a push for internal controls (automation acts as an internal control, especially of needlessly error-prone processes such as revenue recognition spreadsheets) has been a hallmark of rhetoric surrounding the new guidelines. Additionally, keeping good data that is uniform for investors and auditors is emphasized in compliment to encouraging businesses to have an internal control for obvious reasons such as keeping your business from going under and keeping you out of jail.

 

    Hope this helps! Please comment with questions below or @ProRata on Twitter. Enjoy falling back November 6th!

 

Let’s Tap into Fear for the Scariest Night of the Year (not April 14th, October 31st)

Fear: You’ve wasted your limited time on Earth working on meaningless tasks.

 

Fear: You made mistakes that cost you and you will always regret it.

 

Fear: You missed your deadline.

 

Fear: You develop Chrometophobia as a finance professional

 

Fear: You develop Samhainophobia and it’s October 31st

 

Fear: You could’ve gotten that promotion but you didn’t budget for the right tools and time to

            be somebody.

 

Fear: Your Excel spreadsheet rounded as it was calculating for revenue recognition.       

             what started as pennies lost added up to be hundreds and thousands lost and

             your boss knows it.

 

Because scary movies and particularly creepy, older trick-or-treaters don’t do it for you anymore.

GAAP Compliance and the History of the High Five

 

You won a gift card, you get away with a prank, you encourage a teammate, you let a person as young as a toddler know they did a great job, what do you do?

 

   *High Five*

 

    Its a little weird though?

 

    Slapping palms about chest high or up, generally while smiling, and deciding you have communicated everything you needed to and you go about your day. It’s not a natural reflex in spite of the fact these days it certainly feels like it.

 

    The high five is a relatively new gesture in American history to display mutual happiness and congratulations. Or, if you are an avid “How I Met Your Mother” follower, it can even be used to convey grief, moving past awkward interactions, and or to praise your faith.

 

    So the story goes that it started as “giving skin/slapping skin” as a low five given amongst jazz musicians. Like all forms of popularity and notoriety, a person who embodies popular and notable performed the act: famous Al Jolson in the 1927 film The Jazz Singer.

 

   Following it burst of fame as a result of the film, the next major burst of fame came in the late 60s or 70s depending on which athlete you believe. Yep, you read it right, athlete. Famed baseball players Dusty Baker and Glen Burke at a Los Angeles Dodgers game raised his hand to slap in celebration after Dusty Baker made a home run. Out of excitement and velocity, rather than hitting low, they hit high! and the high five was born! (see sources for additional athletes claiming to have been the first to put the high five on the map from its predecessor the low five).

 

    Its final claim to fame was when the Louisville Cardinals in 1980 displayed the high five constantly in a nationally covered basketball game leading to its wide spread popularity amongst the American people. It was in this year the the term was added into the Oxford English Dictionary and in 1981, they determined the noun could also be used as a verb.

 

    Now the high five, like many forms of communication, has taken on a variety of tones, connotations, and strains thanks to individuals personalizing this now famed gesture as seen on popular American TV shows like “How I Met Your Mother.”

 

    Check out the links below for sources and further reading.

 

    So giving a high five is not only taught gesture to us by others to communicate our mutual joy, but its basic enough that a child as young as a toddler can easily communicate with someone who has an impressive number of ticks on the ol’ odometer.

    

    Did you get this far? Awesome! You are officially going to have the best fun fact story at the water cooler. But we are missing a piece:

 

   GAAP compliance and the history of the high five? How do they relate?

     

      Check us out next week for the following blog post!

 

Sources:

 

Neatorama: http://www.neatorama.com/2011/04/21/the-history-of-the-high-five/

Wonderopolis: http://wonderopolis.org/wonder/who-invented-the-high-five

ESPN: http://www.espn.com/espn/story/_/page/Mag15historyofthehighfive/who-invented-high-five

Mental Floss: http://mentalfloss.com/article/50163/brief-history-high-five