In commercial real estate, lease management is an integral part of the accounting system. It involves multiple tasks such as lease review, auditing, renewal, reporting, documentation and much more. The professionals in lease administration must perform management, coordination, handling and monitoring of leases and all things associated with them like payments, clients, etc.
As the number of leases increases, it’s difficult for businesses to manage or organize everything manually. Chances of errors, inaccuracies and delays also increase with manual handling of lease administration. This is where lease management software is used to streamline the process. Such software helps in gathering an extensive amount of data and getting valuable insights from it. It’s a critical tool today that helps make better business decisions.
Today, lease management software will greatly assist in the implementation of new lease accounting standards released by accounting boards. The current compliance-related challenges need more time and resources than one might expect. Inaccuracy in data can make the process more complex and financial statements will show errors. This can lead to additional penalties therefore, it’s an opportune time to use lease management software.
For more information on lease management and lease accounting software, also read, 5 Things to Look for While Deciding the Best Lease Accounting Software. For information regarding lease accounting standards, check out Impact of New Lease Accounting Standards on the Balance Sheet Liabilities and Deadline Extension for ASC842 Lease Accounting Compliance – What It Means for Private Companies.
Why Does It Matter?
Lease management software enables you to centralize all your lease data in one place. It includes non-financial clauses, supporting documents, lease commencement, renewal data and more. This document management helps to access important data from anywhere and anytime. Team members from different departments can also access lease data. Moreover, you don’t have to worry about losing data, as it is safely stored digitally.
Commercial real estate contains a large amount of lease data and associated critical dates. Those handling leases need to remember critical dates for renewal, lease expiry, lease payment, insurance and other things. Missing a single critical date can be costly for any business. A lease management software can help you get notifications, alerts or warnings through different channels such as emails or messages.
Lease management software can be integrated with lease accounting software for better and hassle-free financial management. You can perform different tasks such as tracking payables, receivables, tax filing, online fund transfers and compliance help. It will also be beneficial in understanding the impact on leases and in making decisions related to lease renewal and cancellation.
You can easily create data-driven lease-related reports with multiple customizable options based on your needs and requirements. The reporting features of lease management software will help in sharing valuable information, such as property location, income earned, lease payments pending, etc. It provides helpful insight into how your business is doing.
Lease management software will simplify the process of complying with new ASC 842 and IFRS 16 lease accounting standards. There are many changes in the way leases are accounted for on the balance sheet. If you have a global lease portfolio, you can gain complete control of leases with the help of the software.
Yardi Corom’s lease management software will help comply with these new lease accounting standards. For more details regarding other essential features of lease management software, visit Yardi Corom.