Whether you're serious about growing your lease portfolio or are already battling to manage multiple entities, you're definitely aware of some of the challenges connected with lease management and administration. This blog focuses on how the right software can help mitigate three of the most common dangers.
1. Reduces your admin burden
The administrative load imposed by several leases is one of the most significant burdens. Not only can it take days (sometimes weeks) each month to pull financial information for month-ends, but it can also prevent you from getting a good view of your company's overall financial health.
Pulling reports, double-checking lease terms, and even simply renewing leases should not cause substantial bottlenecks in your decision-making processes. Appropriate software can ensure that financial data is always just a few clicks away, and that your accounting team is free of excessive administrative responsibilities when managing month-ends or pulling reports.
2. Reduces your risk of human error
When it comes to lease accounting, data inaccuracies are one of the most common stumbling obstacles. These errors are frequently caused by obsolete techniques, such as manually entering data. This can result in both major problems such as miscalculations and erroneous reporting, as well as minor problems like inconsistent labelling and a failure to follow the chart of accounts. If you're making decisions based on manually recorded data, it's time to think about how accurate the data is. The majority of these antiquated processes can be properly managed with appropriate lease management software, allowing your team to rely on accurate data and take action based on that information.
3. Reduces your risk of non-compliance with global accounting standards
Change is constant, and this is especially true when it comes to the guidelines for global accounting standards. Property leasing management software eliminates risks associated with proving compliance, regardless of the accounting standard your company must follow (ASC 842, GASB 87, or IFRS 16).
Of course, there is no way to guarantee complete compliance with any solution. Even so, it should enable it, and more importantly, the team that provides the software should be well-versed in the applicable accounting standards' reporting requirements.