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AMTdirect Blog

AMTdirect Blog

How to Get on a Lease Accounting Software Provider's Shortlist

Posted on 12/9/19 7:00 AM by Taft Tucker in Lease Accounting

The tables have turned when it comes to lease accounting software.

It’s standard business practice that vendors fight to win the business of potential clients. But in the present market, the opposite is becoming more and more true. Lease accounting software companies are in more demand than ever.

And it’s all due to the new lease accounting standards. 

Many private companies have underestimated the time and resources it takes to implement FASB ASC 842 and its sister regulations, IFRS 16 and GASB 87. In fact, only 9% of companies are worried about finding a technology vendor to handle the changes. 

And that means when they finally do start the vetting process, there will be a run on the market.

Private companies looking to implement the new lease accounting standards in 2021 should choose now or risk being waitlisted by lease accounting software providers.

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Embedded Leases and the New Accounting Standards: Navigating Lease Types

Posted on 12/2/19 7:00 AM by Taft Tucker in Lease Accounting

There’s a critical - yet extremely overlooked - piece of FASB ASC 842 implementation.

It’s lease type.

In fact, the 43% of companies estimate they only have 1-200 leases, but they may not be considering that FASB ASC 842 covers not just real estate leases, but equipment leases, vehicle leases and embedded leases, too.

And embedded leases - service contracts that contain a lease asset - have presented the biggest headaches for implementation.

Under the new lease accounting standards, reporting for embedded leases has changed dramatically. They must be reported on the balance sheet. Many companies lean heavily on supply and service contracts that contain embedded leases.

Because understanding this topic is essential to success with the new lease accounting standards, we’re diving into the specifics about embedded leases, their impacts on accounting, and a plan of attack for applying them.

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ASC 842 Compliance: 4 Indicators You Must Comply with FASB ASC 842

Posted on 11/25/19 7:00 AM by Taft Tucker in FASB

A strange phenomenon is taking over the accounting world.

Even though there’s been a massive deadline delay for FASB ASC 842 compliance, most private companies are shrugging their shoulders.

In fact, 45% of private companies haven’t even started basic preparations for ASC 842 compliance. And 52% say the deadline change has halted their plans to move forward with implementation.

This passive attitude stems from the simple fact that some private companies don’t believe the new lease accounting standards apply to them.

If you fall into this line of thinking, we’ve got news for you.

There are actually few companies to which the new lease accounting standards don’t apply. 

Because there are so many dangerous misconceptions floating around about what’s required with the new lease accounting standards and who’s required to follow them, we’re shedding light on this critical topic.

These 4 indicators should clear up the confusion for CFOs and controllers and safeguard against their private companies getting left behind.

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The New Lease Standards: 6 Ways They Can Destroy Your Company

Posted on 11/18/19 7:00 AM by Taft Tucker in FASB

Public companies faced 5 major challenges while implementing the new lease standards, according to a new report from PwC

These roadblocks shed light on what private companies can expect to deal with in 2020:

  1. Automating new lease reporting processes
  2. Ongoing data capture for new leases or changes to existing leases
  3. Identifying and accounting for embedded leases
  4. Strengthening controls for new leasing processes
  5. Disclosure reporting

The new accounting standards are a formidable undertaking for private companies. 

To add to the pressure, the stakes are high to get compliance 100% accurate. Negative side effects are plaguing public companies, including even minor mistakes in reporting. Private companies can expect to be hit just as hard.

One thing is for sure… get compliance wrong, and you’re in for a steady diet of uncertainty and sleepless nights.

Because the new accounting standards have the potential to destroy your company’s financials, we put together a list of possible impacts. It will help you understand the magnitude of lease liabilities and give you a reality check about FASB ASC 842.

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Biggest Takeaways from the 2019 #IFMA World Workplace Conference

Posted on 11/14/19 3:35 PM by Adrienne Ervay in Facility Management, in Events

This previous month, the IFMA World Workplace conference brought together dozens of market experts, hundreds of facility management professionals, and an impressive array of industry influencers to drive the conversation. The result? 3 days filled with valuable content, profitable new business connections, and fresh perspectives on the entire state of the industry.

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Financial Lease Accounting: The Inevitable Shortage of Software Vendors

Posted on 11/11/19 7:00 AM by Taft Tucker in FASB, in Lease Accounting

It’s pretty basic economics…

When there’s high demand for a product or service in the market, the price goes up. And the amount of providers able to offer that high-demand product or service goes down.

This is especially true when the product or service isn’t offered by many vendors in the first place. And it’s exactly what’s happening with lease accounting vendors right now.

The truth is, there’s a shortage of companies that offer financial lease accounting software.

When you consider the fact that most public companies are ramping up for year two of reporting, and private companies have only a little over a year to meet their compliance deadline, it should come as no shock that there aren’t enough solutions in the market today to support the growing needs of U.S. companies.

Even in the best of circumstances, there would be a squeeze.

And with complexities galore and stringent audits, implementing the FASB ASC 842 deadline by January 1, 2021 certainly does not present the brightest of futures.

Because this shortage is so significant and not many experts in the industry are talking about it, we’re covering it in depth. Use this information to light a fire under your own compliance efforts.

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