Systems that can’t test lease data entries and bulk uploads for errors cause big reporting problems down the road. In addition to capturing and maintaining a high volume of lease data and associated amortization schedules, companies must maintain this information and ensure its accuracy for payment processing to landlords and vendors.
That’s why it’s imperative for lease accounting software to validate data entries for ASC 842 compliance requirements. There are two ways incorrect data may be added to a record: either manually or via bulk uploads.
Lease Accounting Policy Compliance Checks and Data Validation for Manual Entries
Due to the risk of human error, it’s inevitable that at some point someone will enter incorrect lease information into a record. For example, ASC 842 says leases with a transfer of ownership clause should be classified as a finance lease, but accountants sometimes inadvertently tag them as operating leases. Other errors are made by incorrectly typing in data such as numbers or text details.
CoStar automatically recognizes errors based on ASC 842 rules and provides instant error messages to users entering data. It also enables managers to run periodic exception reports, which can identify issues across a portfolio of leases. Such reports provide a list of previous warnings, actions that were subsequently taken, and usernames of those who took the actions, as well.
Lease Accounting Policy Compliance Checks and Data Validation for Bulk Uploads
The second way incorrect data is input into the system is via bulk uploads, which allows the addition of numerous data points in seconds. Software that can’t identify missing or incorrect data creates extra work and errors downstream.
During bulk uploads, CoStar blocks those records whose fields contain incorrect or missing data. Users are immediately notified which records were blocked and which fields must be corrected before attempting to upload them again. This ensures that the source data meets the integrity requirements of the destination fields and contains dates, integers, and numeric and text values that are all valid.
Lease accounting software from CoStar scans data entered both manually and via bulk uploads to detect anomalies that fail to meet business rules or compliance requirements.
If your existing lease accounting software is missing these essential, time-saving functions – or if you’re looking to implement the company’s first solution – get the system that can do all this and more. CoStar. CoStar is trusted and recommended by more leading accounting firms and service providers to manage and report on real estate and equipment for compliance with ASC 842 and IFRS 16 guidance. If your lease data is already in a database, upgrading is easier than you’d expect. Schedule a demonstration for your team today.