Telkonet is the leader in intelligent automation, occupancy-based energy management and internet of things (IoT) technology. Founded in 1999, Telkonet has successfully deployed over 600,000 devices across more than 3,000 properties.
Although the ASC 606 standard set by the Financial Accounting Standards Board (FASB) aims to simplify how companies approach the recognition of revenue, it has caused much confusion among businesses trying to figure out how to comply with it. Telkonet’s auditors encouraged it to engage a third-party resource for assistance, so the business approached Wipfli with the goal of better understanding ASC 606 and enabling it to build a roadmap and comply with the required deadline for adoption.
With our commitment to the education of not just clients but also prospects, Wipfli first helped Telkonet understand what the standard was, why standard makers had made the changes and what the scope of compliance looked like. Telkonet realized its internal resources were not equipped to manage the changes and cover the gaps in processes, so it engaged Wipfli to develop a roadmap to bridge those gaps, educate its staff and create a sustainable process that its finance department would be able to apply to future contracts.
We also helped Telkonet implement the roadmap, including overcoming different hurdles such as supporting the standalone selling price of its goods through use of a bell curve analysis.
Ultimately, collaboration was the key to our relationship. The Wipfli team worked closely with both Telkonet and its auditors to ensure the company was fulfilling auditor requirements at year-end. We also made sure to communicate with Telkonet personnel throughout the project to tailor our solution to their specific needs, further helping to ensure finance staff could confidently apply the standard in the future.
WHAT WERE THE RESULTS?
Telkonet knew preparing for ASC 606 was going to require significant time and resources in determining changes that needed to be made, implementing said changes, providing audit documentation and complying with financial reporting requirements as a public company. But with the revenue recognition specialists at Wipfli on its side, the results were exactly what they needed to be.
Telkonet’s auditors were satisfied with the documentation provided, and the audit concluded without any hiccups. Both Telkonet and the auditors felt the engagement with Wipfli was a success and that Telkonet is well-prepared to apply the standard to future contracts.