Do you know that one of the top challenges in meeting the new leasing accounting standard is lease data abstraction?

A commercial lease varies from a few hundred pages to thousands of pages that contain an extensive amount of information. However, not every piece of data in a lease document is relevant to running daily operations, accounting, or even handling portfolio management. It is hardly feasible to pore over these voluminous and old contracts stored in different forms and locations to identify and parse relevant information. The challenge is further compounded by the lack of right resources, control mechanisms, quality assurance, and appropriate tools. This makes lease abstraction an increasingly challenging task rife with data management, accuracy, and quality issues. Plus, the fact that there is no standardization in the way lease contracts are stored and maintained intensifies the issue of inconsistency and data collection.

Despite its challenges, lease abstraction is in high demand, as it plays a vital role in ensuring compliance with the new accounting standards, efficient operations, and portfolio management. Accurate, timely, and concise lease abstraction requires not just in-depth understanding of the commercial lease terms and accounting requirements, it also needs the right technology and tools to ensure continuous data management. This is why organizations are increasingly outsourcing lease abstraction services to professional service providers to leverage their expertise, specialization, and resources to their advantage. By streamlining lease abstraction and establishing a data management process, organizations can have easy access to critical data points needed to efficiently manage lease portfolio and meet accounting compliance requirements. Plus, highly structured data presented using modern data visualization techniques also helps to analyze leasing patterns and gain meaningful and profitable insights.

Download our white paper  to learn how accurate lease abstraction can help optimize operational efficiency and ensure timely compliance and how up-to-date and high-quality lease data is invaluable when it comes to risk management.