Lease contracts are complex by default and accurately tracking them, particularly when they number in the hundreds, is an onerous task. Those who manage leases often find it difficult to keep up with the provisions, obligations, critical dates and other important details. Lack of information regarding lease details can prove costly for companies.
Following release of the new lease accounting standards, companies are trying to implement them as quickly as possible. It is now more important to have a thorough understanding of lease details to avoid hefty penalties in case of noncompliance. This is where lease management software and lease accounting software can help to streamline the process, centralize data and simplify reporting.
Following are five ways lease management software can help cut unnecessary costs and improve ROI.
The new lease accounting standards have implications on compliance as well as the balance sheet for both public and private companies. Moreover, all stakeholders, departments, team members and vendors are impacted as well. Lease management software tracks lease modifications continuously. Details such as critical dates, reports, calculations, expiry dates, clauses, etc., are clearly defined in an easy-to-understand format, increasing visibility and boosting productivity.
Amidst the pandemic, there is extra pressure on business administration to manage leases effectively. And if you have tasks that are stacking up every day, there is an urgent need to ease the overburdened team and reduce the redundancy of administrative work. The automation capabilities of lease management software allow teams to focus on higher value tasks, ultimately saving time and money.
Lease management software can help you reduce costs in many ways.Automation, visibility, improved tracking and other features boost accuracy and quality of reporting. Thus, it simplifies auditing and saves money spent on back and forth with auditors. Additionally, accurate and timely data saves expenses that might otherwise be paid due to lease expirations or noncompliance.
Lease management software improves analysis capability. It helps in identifying and recording critical data that is valuable to your business. For example, you can easily search for provisions and terms that are affected or changed due to the pandemic. Additionally, it can be leveraged for more favorable terms during lease negotiations and renewals, lease agreements, etc.
Lease management software enables you to share important data with your team, leading to better reporting and developing a robust strategy. The comprehensive and customizable reporting mechanism helps in understanding your company’s standing with little to no effort.
Yardi Corom is a simple and comprehensive accounting, lease and workplace management solution for CRE tenants. Our cloud-based software solution increases efficiency and accuracy across your entire lease portfolio: manage leases and subleases, track key lease data, centralize transactions and become FASB/GASB/IFRS compliant. To learn more, you can visit our website or schedule a meeting with our team.