Share this
What are the hidden benefits of the new lease accounting standards?
by Matt Waters, CPA on April 17, 2019
ASC 842 and IFRS 16 lease accounting standards are changing to ensure business practices and reporting maintain an appropriate level of transparency and trust. Before year-end, private companies must transition from the previous standards and be in full compliance with new IFRS and FASB standards. While this transition may be fueling questions and anxiety, companies should also embrace the real benefits which can be realized along the compliance process.
Better Budgets
In order to comply with the new standards, companies are required to pull copious amounts of data on leases. While cumbersome at the onset, the end result is greater, more intuitive insights into your leases. Implementation of lease accounting software with a custom reporting feature will allow you to provide your business leaders with specific advice to consider as they enter and renew leases.
Improved Data Management
Centralization of lease contracts and related documents in one software system will make it easier for any department to find what they are looking for. Plus, manual data entry of critical lease and contract information such as renewal and payment dates leaves a lot of room for error. While not intentional, these mistakes can be costly when the result is missed payments or late fees. By implementing new lease accounting software to aid with compliance, the new solution should also track important dates associated with every lease. A good software solution will send automated notifications of status changes for critical data elements, including renewals, to the accounting department in advance of critical dates. This results in time and money saved.
Better Vendor Management
Another advantage associated with centralized lease accounting is better vendor management and harnessing the full potential of the organization’s buying power (or leasing power). A holistic view of all leases in one repository may reveal economies of scale and provide opportunities for increased leverage with certain vendors.
More Efficient Audits
Any change that makes the auditing process easier is exactly what an accounting department wants to hear. Let’s face it, responding to auditors’ requests is time-consuming and stressful. But with the new lease accounting software, auditors can remotely log in, pull reports and access data without having to bother, or visit, the accounting department. This makes everyone’s job easier!
Share this
- ASC 842 (81)
- Lease Accounting Software (74)
- Accounting Teams (39)
- Lease Administration Software (25)
- Retail Tenants (15)
- Commercial Real Estate (12)
- Lease Management (11)
- Market Data and Analytics (7)
- Real Estate Teams (7)
- ESG (5)
- Success Stories (5)
- News and Media Coverage (4)
- Transaction Management Software (2)
- Customer Success (1)
- Office Tenants (1)
- November 2024 (2)
- October 2024 (4)
- September 2024 (2)
- August 2024 (5)
- July 2024 (3)
- June 2024 (3)
- May 2024 (4)
- April 2024 (1)
- February 2024 (1)
- December 2023 (4)
- November 2023 (6)
- October 2023 (4)
- September 2023 (2)
- August 2023 (2)
- July 2023 (3)
- May 2023 (2)
- March 2023 (1)
- February 2023 (3)
- January 2023 (1)
- December 2022 (3)
- November 2022 (4)
- October 2022 (4)
- September 2022 (1)
- August 2022 (4)
- June 2022 (1)
- May 2022 (4)
- April 2022 (8)
- March 2022 (3)
- February 2022 (1)
- January 2022 (2)
- November 2021 (2)
- October 2021 (2)
- September 2021 (3)
- August 2021 (15)
- July 2021 (3)
- June 2021 (1)
- May 2021 (1)
- April 2021 (3)
- March 2021 (1)
- January 2021 (1)
- December 2020 (3)
- November 2020 (1)
- October 2020 (2)
- September 2020 (2)
- August 2020 (3)
- July 2020 (2)
- June 2020 (3)
- May 2020 (1)
- April 2020 (1)
- March 2020 (1)
- February 2020 (1)
- December 2019 (1)
- October 2019 (1)
- September 2019 (2)
- August 2019 (3)
- July 2019 (2)
- April 2019 (69)
- October 2018 (1)
- August 2018 (1)
- July 2018 (1)
- June 2018 (1)
- May 2018 (1)
- April 2018 (2)
- March 2018 (3)
- February 2018 (2)
- December 2017 (1)
- August 2017 (3)
- June 2017 (2)
- May 2017 (2)
- April 2017 (1)
- March 2017 (2)
- January 2017 (2)
- November 2016 (2)
- July 2016 (1)
- June 2016 (1)
- July 2015 (1)
- March 2015 (1)
- June 2014 (1)
- April 2014 (11)
- October 2011 (1)
You May Also Like
These Related Stories