New lease accounting standards have accounting teams scrambling to make changes and meet deadlines, and for many, a significant portion of the pressure includes a major software purchasing decision. Not only do project teams need to ensure the lease accounting software includes the right features and benefits for compliance, but also the right pricing structure for their organization. And while lease accounting compliance may be the primary goal for software selection, this should also be seen as an opportunity to choose a solution which provides added value.
Here are just a few of the opportunities to maximize the return on investment made in lease accounting software necessary for compliance with the new standard:
Look for ways new lease accounting software can increase productivity
Improving employee productivity saves time and money for your company. The lease accounting software selected shouldn’t complicate your system, processes and procedures. Instead, it should provide efficiencies and streamline lease accounting management and administration. Research the software to make sure it eliminates manual processes and makes routine tasks easier for your team.
Eliminate costly mistakes
Look for a lease accounting solution that includes lease administration software, as integrating capabilities will afford even further cost reductions and efficiencies. Here are a few examples to demonstrate the value of integration:
- Renewal notification alert will automatically be sent allowing the best chance to renew at the most favorable terms.
- Payments are automatically validated eliminating mistakes such as continued payments on expired leases. Integrated systems validate current lease terms and inform accounts payable.
A comprehensive lease management platform will help you take control of not only your leased portfolio but the associated costs as well.
Make Better Decisions
IFRS 16 requires all leases to be included on the balance sheet which means all organizations are scrutinizing their leasing decisions to ensure they are the most cost-effective. Having a lease accounting tool that serves as a central warehouse for all lease data can help with these decisions.
To fully leverage the lease data needed to make informed decisions, choose a lease accounting software that combines data for everything your company leases – from real estate to equipment to land – and collects information on the daily administration too. This will allow you to hone in on the details and produce reports that provide clear details you can use to make decisions. CoStar Real Estate Manager integrates lease accounting and lease management into one software solution. Learn more here.