Secure Workflows: Protecting Data in Global Outsourced Operations
18 DECEMBER 2025
Revenue is the most scrutinized number in any financial statement.
And with the introduction of ASC 606 (Revenue from Contracts with Customers), the way companies recognize that revenue fundamentally changed.
For CPA firms, especially those handling clients in SaaS, real estate, manufacturing, or construction , ASC 606 presents both a challenge and an opportunity. It demands deeper contract analysis, more collaboration between finance and legal teams, and often, significant changes in systems and workflows.
But here’s the good news: with the right implementation support and outsourcing strategy, your firm can streamline ASC 606 adoption and deliver real value to clients.
In this guide, we’ll cover:
- What ASC 606 is , and why it matters now
- The core challenges CPA firms face
- A practical, 5-step implementation roadmap
- How outsourced accounting firms in India are helping U.S. firms reduce costs and improve compliance
- Tools, templates, and checklists you can use today
ASC 606 in a Nutshell
ASC 606 is the revenue recognition standard issued jointly by the FASB and IASB, which replaces industry-specific guidance with a unified, 5-step model for recognizing revenue from contracts with customers.
The 5-step model includes:
- Identify the contract(s) with a customer
- Identify the performance obligations in the contract
- Determine the transaction price
- Allocate the transaction price to performance obligations
- Recognize revenue when (or as) performance obligations are satisfied
It applies to private and public companies and covers all industries, making it one of the most sweeping changes in U.S. GAAP history.
Why CPA Firms Are Struggling With ASC 606
Even years after the standard became effective, many small to mid-sized CPA firms are still playing catch-up , especially when dealing with:
- Complex, multi-element contracts (common in software, real estate, media)
- Milestone or subscription billing models
- Bundled deliverables (e.g., training, licenses, support)
- Custom spreadsheets that can’t scale or support audit readiness
- Clients with inadequate internal documentation or ERP setup
When not implemented correctly, ASC 606 compliance gaps can lead to audit findings, delayed closings, and even client churn.
How Outsourced ASC 606 Support Is Changing the Game
Firms offering outsourced bookkeeping services in India are now playing a critical role in helping CPA firms and their clients comply with ASC 606.
Here’s what these specialized teams typically support:
✅ Contract reviews and tagging
✅ Performance obligation tracking
✅ Revenue schedule creation and deferral modeling
✅ GL mapping and reconciliation
✅ Audit-ready documentation and disclosures
✅ ERP configuration for revenue modules (e.g., NetSuite ARM, QuickBooks, Zoho, etc.)
For CPA firms outsourcing to India, this is a cost-effective way to build ASC 606 capabilities without overloading U.S.-based teams.
The 5-Step ASC 606 Implementation Roadmap for CPA Firms
Whether you’re guiding clients or implementing internally, here’s a clear, practical roadmap:
Step 1: Contract Inventory and Classification
Start with a comprehensive contract inventory. Create a central repository where all client contracts are stored, tagged, and version-controlled.
Tasks:
- Classify by industry, contract type, and materiality
- Highlight bundled elements or unusual clauses (e.g., termination rights, renewal options)
- Assign responsibilities between onshore and offshore teams
🛠️ Outsourced accounting firms in India can assist with mass contract abstraction and tagging.
Step 2: Performance Obligation Identification
Each contract must be broken down into its distinct performance obligations.
Example: A SaaS subscription may include:
- Software license
- Implementation service
- Customer support
- Future upgrades
Each one must be assessed independently.
Red flag: Many firms fail to update this analysis when contracts are modified or renewed.
Step 3: Transaction Price & Allocation
This is where things get tricky. You must:
- Determine total contract value
- Adjust for discounts, incentives, penalties
- Allocate revenue to obligations based on standalone selling prices (SSP)
💡 Outsourcing accounting to India gives you access to dedicated analysts who can help build allocation models using Excel or BI tools.
Step 4: Revenue Recognition
Here, revenue is recognized over time or at a point in time, depending on the nature of the obligation.
This is where the system setup becomes critical.
- Key systems to configure:
- Deferred revenue accounts
- Monthly revenue schedules
- Milestone triggers
- Contract modifications
🔍 Make sure your offshore team is trained in general ledger solutions and revenue subledger reconciliation.
Step 5: Reporting & Disclosures
ASC 606 requires expanded footnote disclosures, even for private companies.
Include:
- Contract asset/liability rollforwards
- Judgments and assumptions used
- Revenue disaggregation by timing, geography, product line
Outsourced teams can support ongoing reporting and prepare for audit documentation at year-end.
Common Mistakes to Avoid
🚫 Treating ASC 606 as a one-time project
🚫 Ignoring contract modifications and renewals
🚫 Using legacy ERP systems without revenue modules
🚫 Not involving outsourced teams in setup and testing
🚫 Lack of standardized SOPs for outsourced execution
Outsourcing ASC 606? Here’s What to Look For
When evaluating accounting outsourcing companies in India to support ASC 606 work, look for:
✅ Experience with ASC 606 workflows
✅ ERP + Excel modeling capabilities
✅ Knowledge of U.S. GAAP and audit expectations
✅ English-language fluency and documentation discipline
✅ Proven work with CPA firms outsourcing to India
Firms like Windy Street specialize in providing ASC 606 implementation and support services to CPA firms and consulting groups. We build your offshore capabilities without adding compliance risk.
Templates & Tools You Can Use
Here’s a quick list of ASC 606 support assets we recommend having in place:
Tool Purpose
- Contract Intake Template Standardizes information capture
- Performance Obligation Tracker Breaks down and tracks obligations
- Revenue Allocation Worksheet Automates SSP-based allocations
- Journal Entry Template Ensures consistent GL impact
- ASC 606 Disclosure Checklist For year-end compliance
Need these templates? Let us know , we’ll share editable versions.
Final Thoughts: Be Proactive, Not Reactive
ASC 606 is no longer “new,” but many firms are still behind. Whether you’re advising clients, preparing for audits, or upgrading internal processes, your approach to implementation can define your firm’s reputation.
By combining sound accounting expertise with outsourced operational support, you can confidently meet ASC 606 requirements and expand your client services without expanding your payroll.
Need Help Supporting ASC 606 Implementation?
At Windy Street, we help CPA firms, advisory firms, and startups by offering:
- Dedicated ASC 606 implementation teams
- Offshore bookkeeping support from India
- Contract analysis, revenue recognition, and audit prep
- Integration with NetSuite, QuickBooks, Zoho, and more
Let’s talk about how we can help your firm scale its compliance and advisory services, while keeping costs predictable and operations efficient.
