2017-12-05 00:00:00 Firm Management English Get tips on implementing new International Financial Reporting Standards and learn how you can help guide your clients through the process. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/12/Accountants-review-IFRS-for-accounting-standards-to-small-businesses.jpg https://quickbooks.intuit.com/ca/resources/firm-management/small-business-accounting-standards-ifrs/ For a Smooth Transition, Develop a Strategy for Implementing IFRS

For a Smooth Transition, Develop a Strategy for Implementing IFRS

1 min read

The International Financial Reporting Standards are due to change by January 1, 2018, with more changes on the horizon for the following January. To deal with these changes or similar shifts in the world of accounting, you need the right strategy. You also need to communicate what’s happening to your clients so they know what to expect.

First and foremost, make sure that you understand the new standards. You may want to enroll in a continuing professional development course that covers the changes. Ideally, at least one person in your organization should understand what needs to happen and spearhead the efforts. When you fully understand the changes, start to communicate with your clients about how the changes are going to affect them, and give them guidance on what changes are going to happen and when. For instance, if you have construction clients who need to shift their revenue recognition strategy, let them know about the changes and provide a timeline for implementing them. You may want to draft newsletters or emails to inform clients, and you may want to schedule sit downs with the clients who are affected the most.

Consider taking a dry run both internally and with your clients by using pro-forma statements. A pro-forma statement is a financial statement that integrates certain projections and assumptions. It lets you run financial statements with current numbers under the new rules. That way you can easily see where you need to make changes or adjustments.

Make sure you understand the changes inside and out, appoint someone to oversee the changes, create a timeline, and communicate clearly with your clients about the upcoming changes. That helps make the process smoother and easier for everyone involved.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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