For more than 50 years, Turlington and Company, L.L.P. has served the audit, tax, and business consulting needs of the rural telecommunications industry. From the rapid advancements in communications-related technologies to the recent reforms that threaten the certainty of the rate-regulated environment in which these companies have traditionally operated, the only constant these days appears to be change. Our firm believes that the distinctive financial and regulatory features of telecommunications carriers warrant the services of an advisor with industry-specific expertise. As a result, we have assigned a group of professionals that are almost exclusively dedicated to the issues surrounding our telecom clients. This focus has allowed us to observe and help define best practices, and our years of experience ensure that we not only understand the challenges that our telecom clients face, but that we are also able to provide innovative solutions to proactively address those challenges.
As we mentioned, changing rules are the challenge that our specialists are dealing with on a daily basis so that our clients can be assured that their financial statements are all in compliance with GAAP rules and with all current FASB requirements.
The transition from fixed communication networks, using cable or fiber optic connections to digital networks that have the capability to carry both voice and data, has created huge changes in the infrastructure, intellectual property due to internally-developed software by some carriers and the services offered to customers, both in fixed lines and in the mobile sector.
Another area of concern and research relates to the prevalence of cloud-based cybersecurity. In 2015, there were 38% more security breaches than in 2014. These threats are growing exponentially and every business must take these risks seriously. Companies are increasing investment in cloud security measures for these reasons.
No matter what level of service our clients provide to their customers, whether they utilize their proprietary infrastructure or purchase capacity and resell to their customers, whether they are servicing the fixed line or mobile sectors, there are complex accounting regulations with which they must comply.
Accounting for mobile contracts, revenue recognition, capitalization of customer acquisition costs, contract fulfillment, amortization of licenses, goodwill and other intangible assets all provide an ongoing need for professionals to handle these complex issues. Our clients have to utilize their assets, both human and fixed assets, to best service their customers. With Turlington and Company, L.L.P. handling these complex accounting issues, it frees our clients to focus on the growth of their telecommunication businesses.
For additional information regarding our involvement in this industry, or to inquire about our services, please contact one of the Partners in charge of our Telecom practice, Pepper Younts or Bill Farris.