By now, everyone knows about the new lease accounting standard FASB ASC 842.
It’s taken the lease administration world by storm. Public companies were the first to take on compliance challenges in 2019. And now private companies are implementing new processes to meet their January 1, 2020 deadline.
The rules, their implications, and the challenges have been covered in detail:
- FASB ASC 842 Summary
- 13 Must-Read Articles for Lease Accounting Compliance
- Why Lease Accounting Lagards Face Serious Risks
- The Complete FASB ASC 842 Lease Accounting Resource Center
- New Lease Accounting Standard (ASC 842) – Adoption Readiness Planning
What many organizations are finding out is the immense amount of time, energy and money it takes to implement these new lease accounting standards.
This is because they’ve been struggling with manual, time-consuming lease accounting processes even before the standard came into play. Now the complicated rules they have to execute put these challenges into sharp relief.
The good news is that cloud-based software decreases the time it takes to manage leases. It increases your team’s productivity, which means costs go down. And most lease administration software today has FASB ASC 842 compliance built in.
To help you understand the value you can get from a lease administration software solution, we’ve created the Lease Administration & Accounting ROI Calculator.
You can use this free tool to determine how much time & money you could save by implementing an automated solution for lease administration and accounting processes.
How It Works
We created the calculator to help financial and real estate teams measure two important aspects of their lease accounting processes: time and money.
The calculator itself is simple to use.
You’ll enter data into the form, data anyone on the team will know off the top of their heads. If not, it shouldn’t be too hard to access: average number of leases, average time spent on processes.
One aspect that may require a little more digging is the number of equipment leases your company manages. However, this information is imperative to include. With the new lease accounting standards, equipment leases are moving from the footnotes onto the balance sheet right along with real estate leases.
This means you could be spending a significant portion of your compliance preparation locating, abstracting, and incorporating your equipment lease data.
Once all your information is entered into the calculator - no need for perfection here, a close estimate will work just fine - we’ll do the math.
Based on our research and work with Fortune 500 companies over the past 20 years, we’ve proven lease administration software can cut your money and time savings in half. This is especially true when you add in implementation of the new lease accounting standards.
Using data compiled from our own experience working with our customers, plus the data you provide, we’ll automatically calculate just how much time and money your organization could be saving by automating your lease administration processes.
What You'll Get
What you’ll get from the calculator is a specific number of hours and a specific dollar amount. These are what you can safely bet you’ll save by automating your processes.
Using these estimates, you can answer important questions about the impact of lease administration software on your business:
- How many days of time can you get back by using software?
- With that time, what can the average person on your team accomplish if he or she wasn’t devoted to manual tasks for lease administration or implementing compliance for FASB ASC 842?
- With the money you’ve saved, could you hire another person full-time or part-time to help on your team with other value-add initiatives?
Only your specific numbers and company goals will allow you to answer these questions with confidence and specitivity.
You’ll also want to get the opinions of your peers and managers regarding the output of the calculator and the followup questions. Your teammates should derive their own answers from the calculator’s numbers and the team should share their perspectives as a whole.
You’ll want your entire real estate and financial teams to understand the increase in time and decrease in cost by automating your lease administration processes.
It’s helpful for everyone on the team - from the C-suite to entry level employees - to understand the significance of these numbers.
Next Steps: Lease Administration & Compliance Made Easy
You’ve assessed the data. You’ve discussed it with your team. And now it’s time to evaluate your options.
On the one hand, you can continue with manual, time-consuming processes. You’ve always done it this way, and although spreadsheets can be tedious, they work. When it comes to the new lease accounting standards, you’ll hire a consultant to help you make sure your numbers are correct.
That’s one option.
The other option is to make a move to automate the entire process with software. This will mean understanding what’s available on the market today, what you can afford, and what you absolutely need in a software solution.
We’ve worked with hundreds of clients on the new lease accounting changes. And we’ve been in the lease administration space long enough to know about the painful minutia your team faces every day.
Our clients who’ve implemented lease administration software will admit it was hard to make the switch.
But change is never easy, right?
Those same clients will also tell you that using software was the best decision for their businesses in the long run from a time and money savings perspective.
We’re in the 21st century after all. Time to ditch those old-school processes in favor of modern technology that will make your life a whole lot easier. If you want to take a peek at what that might look like, schedule a time to talk to one of our experts.
We’ll show you how our industry-leading lease administration and accounting software is helping companies just like yours automate their lease accounting and compliance in the least amount of time, effort and expense.