Achieving compliance on an ongoing basis with the new lease accounting standard ASC 842 presents unprecedented challenges for the companies. It not only demands a complete overhauling of the processes and systems but requires right approach, skill and data management capabilities.
While the new lease accounting standard would help provide in-depth and complete view of an organization’s financial position, managing compliance is no easy feat. Precision and timeliness are critical. However, given the overwhelming requirements of transforming the lease accounting data capture and management processes, make it an arduous and complex operation. The challenge is further compounded by the varied nature and complexity of lease agreements and the extensive range of data that need to be extracted and captured from these contracts.
In a compliance-heavy and aggressively competitive business environment agility and speed are key to success. Which means additional challenges and burden will only negatively impact organizations’ ability to stay competitive and meet business objectives. This is why many companies are choosing to partner with a vendor and outsource lease accounting services. While outsourcing provides a great advantage in managing and streamlining lease accounting activities, it is imperative for organizations to select the right partner to reap the benefits. Here are some of the key aspects to consider before you select a vendor, because the decision and investment you make now will have a significant long term effect.
Can offer a full breadth of lease management support
It is advisable, when scouting for vendor, companies should not limit the scope to lease accounting services. They should rather look for a provider who can offer a comprehensive support across lease abstraction, administration and management. A vendor who can support throughout the process of lease management would able to help you efficiently manage lease data, enabling you to not just meet the current requirements but also stay ahead of evolving industry standards.
Has in-depth knowledge of accounting platforms and can respond to any changes
Organizations should seek vendors who are adept in operating multiple lease accounting platforms and lease management software. They should be able to provide complete technology support, respond to any changes in infrastructure quickly and should be skilled in taking advantage of any platform upgrade and enhancements. Such technology capability and knowledge would help enhance process efficiency, contain cost and accelerate compliance.
Should provide business value through certainty and quality
While it demands strategic investment, cost-effectiveness should be a key consideration. The vendor should be capable of delivering services and quality assurance that minimize cost of compliance and risk. Vendors who bring deep industry experience, robust data management capabilities and technology-led solutions are better positioned in offering cost-effective services through economies of scale. Such vendors provide easy access to skilled resources and stringent and efficient processes and help you meet lease accounting objectives effortlessly.
Springbord brings years of real estate industry experience that is backed by demonstrated data management capabilities. We have been able to establish long-term relationship with our clients through responsive and highly effective services and timely communication. Talk to us to find out how we can help you scale your efforts, maximize ROI and streamline lease accounting processes to ensure accurate disclosure and timely compliance.