Have you ever found yourself overwhelmed by all the processes and tasks involved in lease management and lease accounting? Managing multiple leases and making sure IFRS 16 guidelines are met takes plenty of time, effort, and attention to detail, and may still result in errors.
On the other hand, streamlining lease management processes brings efficiency, cost savings, better visibility, and improved compliance to organisations. It allows them to optimise asset utilisation, reduce risks, and make data-driven decisions that positively impact their operations and bottom line.
How can this be achieved? By entrusting your lease management and lease accounting tasks to a secure, reliable IFRS 16 software solution! Utilising lease management and lease accounting software offers several benefits for property managers, legal teams, finance managers or accountants working with organisations that handle any number of leases. In this post, we discuss a few key advantages.
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Simplified lease administration
The software provides a cloud-based repository for storing and organising lease agreements, important documents, and related information. This eliminates the need for manual record-keeping and enables easy access to lease data whenever required. In addition, the software automates various lease administration tasks, such as lease classification, rent calculations, payment reminders, and critical date notifications. This streamlines the lease management process, reduces errors, and makes achieving compliance with lease terms and obligations easier.
Improved efficiency
As noted above, adopting lease management and lease accounting software eliminates manual and inefficient processes, such as using spreadsheets or paper-based systems. By automating workflows and lease-related tasks, such as data entry, calculations, and reporting, organisations will be able to allocate their resources more efficiently, which can result in cost savings and improved productivity.
Accurate financial reporting
Lease accounting software can assist in facilitating accurate and timely financial reporting. It can significantly simplify lease accounting by automating lease-related calculations, providing companies with accurate and up-to-date asset data. Lastly, by tracking asset values, depreciation, and related expenses, businesses can generate more precise financial reports, improve compliance with supported accounting standards, and facilitate better decision-making.
Compliance with International Financial Reporting Standards
IFRS 16 software helps companies comply with the IFRS 16 (AASB 16) guidelines, the current globally recognised accounting standards. By automating lease calculations and reporting, the software helps businesses meet regulatory requirements and maintain accurate financial statements, reducing the risk of non-compliance and associated penalties.
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Enhanced visibility
Lease management software provides real-time visibility into lease data. Its comprehensive reporting and analytics capabilities allow lease managers and accountants to gain insights into lease portfolios and easily access information related to lease obligations. They can generate customised reports to track lease performance, monitor lease expirations, and assess financial impact, which can help them manage their lease portfolios more efficiently.
Risk mitigation and compliance
Streamlining asset management includes implementing proper risk management practices. Lease management software can help ensure compliance with legal and regulatory requirements. It helps track critical lease dates, generate alerts for lease renewals or terminations, and manage compliance-related documentation, reducing the risk of penalties or legal disputes. By identifying critical assets, assessing risks, and implementing appropriate security measures, organisations can reduce the risk of asset loss, damage, or unauthorized access. This is particularly important for high-value or sensitive assets.
Efficient lease negotiations and renewals
Lease management software facilitates efficient lease negotiations and renewals by providing quick access to lease terms, historical data, and performance metrics. Property teams can easily identify lease options, evaluate financial implications, and make informed decisions based on that information.
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Scalability and flexibility
Lease management and lease accounting software can handle large volumes of data, accommodate growing lease portfolios, and adapt to changing business requirements. It offers scalability and flexibility to handle multiple properties, diverse lease types, and evolving lease terms.
Collaboration between stakeholders
IFRS 16 software can facilitate collaboration between various stakeholders involved in lease management, bringing together finance, legal and property teams, by providing a centralised platform for communication, document sharing and workflow management.
Overall, lease management and lease accounting software improves operational efficiency, reduces manual errors, helps achieve compliance, and provides better control and visibility over lease portfolios. It enables lease managers and accountants to optimise their lease administration processes and focus on strategic decision-making.
If you are looking for a system that will help you effectively manage your lease portfolios and achieve IFRS 16 compliance, we would like to invite you to book a demo with us!
Nomos One is a leading IFRS 16 software provider
Nomos One helps organisations of various sizes and sectors to optimise their lease management and lease accounting processes.
Our robust software solution can help you maintain compliance, streamline lease management tasks, make informed decisions, reduce costs, and mitigate risks associated with lease obligations, ultimately enhancing financial performance and operational efficiency.
Contact our team today for a friendly discussion on how we can best help you!
