Read time 2 minLease administration has evolved from being a support function to a more strategic role that allows industry players to optimize lease portfolio performance. An efficiently managed lease administration can help gain complete access to the lease portfolio, improve risk assessment and management, maximize recoveries, and ensure timely accounting and compliance.
That said, given the wide variety of lease types, complexities involved and the deluge of data, lease administration has become a tedious and time-consuming task that demands dedicated focus and resources. Let’s look at some of the ways through which you can improve lease administration efficiency, reduce cost and errors, and ultimately improve portfolio performance and increase the bottom line.
Establishing a comprehensive process
Naturally, if the existing process is failing to yield desired results, then the first step is to review and identify gaps and areas of improvement. It is essential to establish a set of standard procedures for updating and maintaining new lease contracts to ensure access to accurate and up-to-date lease data across the board. Having a comprehensive and standardized process also eases up the burden on the accounting team. Better management of lease data helps easily reconcile and consolidate information for accounting purposes enabling you to seamlessly comply with FASB ASC 842 regulations.
Setting up better controls
The second step would be to ensure the processes are being followed diligently. This would entail setting up controls that can help not just monitor and regulate processes but also ensure proper documentation. With proper controls you can better regulate approvals needed for accounting and administration tasks, ensure you have a complete audit trail, and execute lease terms timely and easily.
Improving data management capabilities
One of the key aspects of improving any operations is to have a robust data management capability. Centralized data management is critical when it comes to streamlining lease administration. Access to the right information at the right time is key to ensuring effective processes and in turn driving operational efficiency. Seeing as how tracking, updating, and managing lease data is central to lease administration having the right resources, tools, and talent to manage lease data efficiently is imperative to meeting business objectives.
These are but a few top tips to streamline the lease administration process. This would help establish a strong base that can help regulate, manage, and control various moving parts and other processes that come under lease administration. You can also choose to outsource lease administration if you do not wish to go through the hassle of revamping the internal processes. It allows you to get ready access to skilled resources and the right solutions that help you improve process efficiency from the get-go and at an optimized cost.
At Springbord we have been helping companies manage their lease portfolio efficiently, minimize risk, ensure compliance, integrate data with other platforms, and improve overall lease data management. To know more about our Lease administration services, connect with us today!
