.png?width=800&height=500&name=lease-management%20(1).png)
Did you know that businesses lose an average of $15 million every year from hidden costs such as inaccurate data quality? Research confirming this aligns with a common business concept called the 1-10-100 rule - it costs an organisation $1 to verify the data at its point of entry, $10 to correct or clean up the data, and $100 (or more) per record if you do nothing!
Lease management is traditionally a very manual process, and therefore prone to these errors. What's more, since the adoption of IFRS 16 in 2019, the complexities of managing a portfolio of leases have increased. Together, the risk of errors and hidden costs can lead to financial burden on even the most profitable companies. This heightens the need for identifying hidden expenses and preventing exponential loss as a top priority for businesses.
What are the hidden costs of lease management?
- Using inaccurate data: Data being shared, changed and duplicated in manual systems and spreadsheets can lead to failure in recognising financially unviable leases, or, failing to recognise viable leasing opportunities.
- Human error: The significant costs of manual data entry mistakes, and if left unmanaged, can compound with every lease/lease period.
- Missed options: Due to poor alerting capabilities, this can result in a lost lease, significant rent increase, or even a lawsuit.
- Incorrect charges: Inaccuracies in tracking invoices can result in lease payments being made multiple times and/or for incorrect amounts, leading to substantial overpayments.
- Non-compliance with IFRS 16 standards: Potential new business may be based on an assessment of your balance sheets, and if you’re not compliant with the standards, this may disadvantage you, resulting in loss of potential revenue.
These hidden costs pose financial and reputational risks while your leases continue to be managed via manual systems and spreadsheets. No matter how many processes you have in place to address this, they will never capture all inaccuracies. The adverse impact of this, ultimately robs your organisation’s financial position and bottom line.
How can these hidden costs be avoided to safeguard your lease portfolio?
At Nomos One, we’re passionate about simplifying and streamlining the lease management process for businesses. Our software has been designed to help you reduce your risk profile, efficiently manage your lease portfolio, and navigate any challenges that may lie ahead.
It’s an easy-to-use, cloud-based platform that your property and finance teams can both use. This means there’s never a risk of your team members working off different and out-of-date spreadsheets – Nomos One’s reporting suite will display the most up-to-date information about your business lease portfolio.
Since we serve a global market, the system is periodically updated to address any developments across the industry, and in relation to the IFRS 16 standards.
Nomos One is your lease accounting and lease management software solution that provides the support to enable compliance in adopting this standard, together with managing the complexities of applying the guidelines to your lease portfolio.
What are the cost-savings of using lease management software?
- Removal of human error
- No missed opportunities
- Streamlined staffing required to manage records
- Guaranteed accurate and timely payments
- Minimised computer infrastructure
- Assists with compliance with IFRS 16 standards
If your company is faced with the challenge of managing multiple lease arrangements, it’s critical that you are compliant and have the processes in place for their efficient execution. The hidden costs of not addressing this can pose a high financial risk to your business, potentially leading to thousands (or millions!) in wasted dollars.
Nomos One offers a secure cloud-based, end-to-end lease management software solution to overcome this. You can say goodbye to your manual system and spreadsheets, knowing that your lease management can be taken care of in one simple and easy-to-use location. That’s peace of mind for you, and certainty of no further risks to your business posed by any hidden costs to your lease portfolio.
Get in touch with us to explore Nomos One as a software solution for your business. You can organise a personalised product tour about how our software can help efficiently manage aspects of your lease cycle, not only helping you to achieve IFRS 16 (AASB 16) compliance, but transforming the management of your entire lease portfolio.
