Implementing IFRS 16 lease accounting standards is a daunting task requiring adherence to new policies, adoption of new measures and the modification of existing processes. According to the new lease accounting standards, assets and liabilities need to be recognized by lessees in the balance sheet. The aim is to make reporting more transparent and allow companies to ascertain the nature of lease transactions. Transitioning to lease accounting software will help your business achieve compliance without hassle by completing calculations, producing journal entries and automating reports compliant with the new IFRS 16 standards.
The selection and implementation process for lease accounting software can be a time-consuming endeavor. There are, however, certain criteria businesses can investigate to determine the best software for their needs. You should be clear on the software’s data gathering and reporting capabilities, its cost-effectiveness and the different benefits you will enjoy after the successful implementation of the software.
Here are some of the features you should look for when reviewing lease accounting software providers.
Compliance with IFRS disclosure requirements
There are many software solutions on the market promising different sets of features to ease IFRS 16 implementation. However, you must choose a software that helps in meeting all disclosure requirements.
The new standards demand more disclosures in the form of right-of-use assets, interest expenses and information regarding the outflow of leases. A good lease accounting software should develop all disclosure reports as the company needs them.
Maximum accuracy and flexibility
IFRS 16 standards are very complex. Addressing these complexities manually would take a lot of time and resources and may lead to errors. Software solutions, however, should have configurations that automate the process and ensure accuracy.
Internal controls are necessary to maintain accuracy after every change enacted by different stakeholders. An advanced lease accounting software solution will help with the data entry validation mechanism and provide role-based access for optimal results.
Centralized data for easy collaboration
A large amount of lease data is one of the most difficult things to handle. A lease management software solution with a centralized data repository will not only save time, but money as well. It makes it easy for employees of different departments to access the information on the platform.
Additionally, access should be granted to only those who need it, with complex data security protocols and security standards.
Notifications and alerts
The lease portfolios of some companies are large and manually managing each facet of the contracts is a tedious task. It may include payment dates, renewals, events, etc. With lease software solutions, you can send automated notifications and get alerts for every important date or event in your lease contracts.
Making the transition to new standards takes time and effort. But it can be done more easily with a powerful lease accounting software solution and the right support. Yardi Corom Lease Management is a great lease accounting software solution that can help you implement IFRS 16 standards.
Schedule a customized demo for more information regarding the Yardi Corom Lease Accounting Software solution.