Excel is one of the most popular software applications on the planet for good reasons. It’s extremely flexible. It’s cheap. Pretty much everyone knows how to use it to one extent or another, and it’s a great file format for uploading or downloading data from all sorts of other applications. What’s not to love?

In fact, in theory, you could use Excel for managing your entire business. It could be your CRM, your HR system, your inventory control solution, or your POS. It probably isn’t though. Why? Because these tasks are so important and so specialized that it makes sense to use applications that are designed for exactly that purpose. Doing so reduces risk, ensures consistency, and lets you take advantage of custom features that uniquely fit the task at hand.

Time is running short for compliance with the new FASB 842 and IFRS 16 lease accounting mandates. Selecting the right technology solution is essential for meeting the deadline in the short term and streamlining ongoing compliance into the future. There are several types of solutions on the market, so it can be difficult to know exactly what to look for.  Here are some questions you can ask any vendor you consider to ensure you are getting the technology you need.

A key component of complying with the new FASB 842 and IFRS 16 lease accounting standards will require investment. An overwhelming majority (92 percent) of respondents from The Great Accounting Challenge: KPMG’s 2016 Accounting Change Survey believe they will need to upgrade their lease accounting system or invest in new technology as a result of the new lease accounting guidelines. In addition, 77 percent say that technology upgrades will be the most challenging part of compliance.

We are often asked if the new lease accounting standards are a real estate management or an accounting problem. The answer is yes! In fact, those aren’t the only groups that will be affected. The new standards have a much more far-reaching impact than most changes to accounting rules, so folks across the organization will need to step up to the plate to tackle this difficult challenge. Here are some functions to consider.

Many organizations are getting serious about selecting a lease management technology platform that can support the new FASB and IASB lease accounting mandates. If you are like most people, you probably don't choose a lease accounting solution every day, so we thought it would be helpful to offer some of the most important things to keep in mind when considering your options.

We suggest asking any vendor you consider whether they are actively implementing clients under the new standards today. Many vendors are claiming that they have a solution, but what they really mean is that they will have a solution by the deadline date. Ask each solution provider to tell you about their customers who are actively engaged in implementation and insist on a demonstration.

Most people don’t evaluate lease accounting software every day. In fact, many people who have never thought much about lease accounting technology are being compelled by the new FASB and IFRS mandates to start looking for a solution that can get them to compliance on time. To help, we’ve compiled a list of the most important questions to ask any vendor you consider. You can find one with all the right answers.

1- Has the solution been validated by CPA’s and financial reporting experts?

As one major retail client of ours said, “I can’t afford to get this even 1% wrong.” While the screens that you see in a lease accounting solution aren’t terribly complex (at least they shouldn’t be) the calculations that happen behind the scenes are extremely complicated. That’s why you want to insist on a solution with vetted calculations. Better yet, if the system is recommended by some of the big accounting firms.