As private companies are bracing for the upcoming lease accounting compliance deadline, many are grappling with decisions regarding new software purchase. A key part of that decision is the extent the new software can and should integrate with existing systems already in place.
The argument for radical change
Compliance with new lease accounting compliance standards may be the impetus needed to completely replace an antiquated software system with a better solution that offers capabilities above and beyond basic compliance. A new centralized repository for lease data and accounting has the potential to offer a return on investment by streamlining accounting operations, reducing errors and increasing the negotiating power with vendors. This approach required a proven method for migrating lease data from the existing system to the new software system.
The case for software integration
Dependent upon the organization’s situation, a more measure approach to lease accounting software may be appropriate. This may be the case if your business has already invested in a software system that is serving the organization well and the business simply needs additional features and functionality to meet additional accounting needs. Or, if the business does not have the capacity to take on radical change at this time and needs to reduce the scope of work to the critical path needed to fulfill basic compliance requirements. And while the radical change promises a return on investment, this approach has lower costs up front. This approach requires a proven method for connecting new lease accounting software with compliance capabilities to existing lease management systems.
The right partner for lease accounting software implementation
Whether radical change or a measured approach is right for your business, it’s critical to partner with a software provider that can provide seamless integration solutions with existing general ledger, AP and other systems, such as SAP, Oracle and PeopleSoft. Interested in learning more? See how CoStar serves differing degrees of software integration.