In today’s fast-paced economy, organizations face countless challenges in managing their lease agreements efficiently. As organizations grow and expand, so do their lease portfolios, making lease administration and accounting a complex and often overwhelming task. Fortunately, lease administration and lease accounting software solutions offer a means to meet management and accounting challenges head-on, gaining full transparency into their lease portfolio to make informed decisions and deliver exceptional customer experiences.
In this article, we will look at what lease accounting and administration software is, how it can help your organization, and explore Accruent’s industry-leading solution, Lx Contracts.
What is Lease Accounting and Administration Software?
Lease accounting and administration software is a solution that manages and minimizes financial risk associated with lease portfolios. The types of leases range from simple real estate leases to highly complex commercial leases, as well as other types of agreements such as equipment or operational leases. Moreover, the solution can manage other types of documentation related to the management of a property such as invoices and legal notices. As such, lease accounting software serves as a digital repository for all lease-related documents and data, allowing staff to search for relevant documents at any time and from anywhere.
The solution’s ability to simplify and centralize processes and the lifecycles of lease portfolios, as well as streamline document management, offers a broad range of benefits.
This includes the ability to easily track leases, manage critical dates, calculate and monitor relevant performance metrics, and ensure ongoing compliance with complex accounting standards such as ASC 842 and IFRS 16. Moreover, lease accounting and administration software makes it easy to identify non-compliant cases and establishes an audit trail to ensure records are always audit ready. and gaining visibility and control over operating expenses. And it also gives landlords complete visibility and control over operating expenses, helping them to identify and realize cost savings opportunities.
Lease accounting software also typically integrates with ERP and accounting systems to automate data collection and entry processes, as well as help stakeholders gain full visibility over the entire lease portfolio.
How Lease Administration and Lease Accounting Software Can Benefit Your Organization
Implementing lease administration and lease accounting software can yield a wide range of benefits for your organization. Some of the most common benefits include:
Manual accounting and lease management processes are labor-intensive and time-consuming. Organizations can save a significant amount of time by automating these processes.
Lease accounting software makes it easy to stay on top of ever-changing lease accounting regulations. Built-in compliance features that ensure adherence to even the most complex accounting standards.
Avoid costly errors and penalties by accurately calculating lease payments and managing lease-related expenses more efficiently. Moreover, it saves time and money by automating time-consuming processes.
Lease accounting software streamlines data collection and analysis to provide real-time insights into lease portfolios. This enables more informed strategic decisions related to lease management decisions such as renewals, negotiations, and expansions.
Lease management software stores all lease-related data and documents in one secure digital repository. This makes it easy to retrieve and share information across an organization.
Unsuccessful Implementations: Tips to Avoid Failed Implementations
While the benefits of lease management and accounting software are undeniable, realizing them is dependent on a successful implementation process. Here are some tips to avoid failed implementations:
Clearly Define Your Objectives
Understand your organization’s goals and needs. Define what successful lease management looks like and how success is to be measured.
Involve all relevant departments and stakeholders from the outset. Learn what challenges each stakeholder and department faces. Collaborative input ensures that your lease management software solution will meet the needs of everyone involved.
Implement Training Processes
Invest in comprehensive training to ensure that all users can navigate the software effectively and maximize its capabilities.
Data Migration and Continuous Support
Develop a plan for migrating existing lease data into the new solution. This will help minimize data loss and discrepancies while allowing you to leverage existing data to make informed decisions. Your software provider can help with the migration process. Make sure that the provider offers ongoing support to address any issues and that the software is regularly updated to ensure compliance with evolving accounting standards and regulations.
Accruent’s Lx Contracts Software
Countless organizations located around the world rely on Accruent’s industry-leading lease accounting software to manage complex real estate and equipment lease scenarios while maintaining compliance with the latest financial standards. With Lx Contracts, your organization can:
- Stay Compliant. Lx Contracts has a 100% success rate of getting clients into compliance with standards such as FASB ASC 842, IASB IFRS 16, and GASB 87. User-friendly tools make it easy to identify potential and correct potential issues such as whether a cost was correctly applied. The software is regularly updated to ensure ongoing compliance with new and evolving financial standards. Streamline Lease Management Processes. Easily track, manage, and report complex lease scenarios from a single, centralized platform. Leverage user-friendly communication tools to identify and address potential issues proactively. Save time and money when sheltering, organizing, formulating, and sending reports.
- Become Audit-Ready. Lx Contracts provides detailed audit logs, which ensures complete transparency and accountability within your organization and helps you achieve compliance with regulations like SOX, SOC 1, and SOC 2. In addition, it simplifies your monthly financial closing process with advanced reporting features and data integrations that make your monthly close audit ready.
- Centralize Lease Data. Centralize data across the built environment, allowing you to easily calculate obligations and gain a holistic view of your organization’s capabilities. Moreover, it can easily separate data into different entities. For instance, segregating data by location and contract view for greater transparency and insights.
- Automate Repetitive Processes. Leverage efficient features such as alerts and notifications to ensure that you never miss critical events such as lease renewals or document reviews. Lx Contracts is continuously updated to ensure that you use the most up-to-date real estate management software on the market.
- Achieve Scalability. Accommodate your organization’s growth with a flexible and scalable solution that grows with your business and adapts to your evolving needs.
- Improve Reporting Processes. User-friendly reporting and analytics features provide powerful insights to enable informed decision-making. Access reports of completed tasks, identify potential issues, and take the initiative.
Comprehensive Lease Accounting and Management Support
Accruent’s global support team offers extensive support services, including free training, structured certification, and hands-on technical support. Moreover, we offer comprehensive implementation services to ensure that your lease accounting software implementation is successful. Our team utilizes a standard implementation methodology, with defined planning, design, configuration, testing, and deploying processes mapped out for each project, with dedicated project managers ensuring that customers and implementation teams remain aligned and on track every step of the way.
But more than that, Accruent employs a world-class team of accounting professionals. We understand the complexities of multi-site retail management and offer our clients lease administration and abstraction services. This gives you access to a team of seasoned lease administrators that leverage market-leading technology and proven processes to help landlords located all over the world to realize significant savings.
Ready to Learn More About Lx Contracts?
Lease administration and accounting software offer a transformative solution for organizations seeking to efficiently manage their lease portfolios. Lx Contracts helps organizations to streamline complex lease processes, maintain compliance, and leverage data to make informed decisions allowing them to thrive in today’s competitive landscape.
To learn more about Lx Contracts, please visit our product page or reach out to a member of our team to discuss how we can help you to transform your lease accounting and management processes.