The landscape of lease accounting and lease management is dynamic and constantly evolving. Its transformation is driven by changing business landscapes, regulatory shifts and advancements in technology. Companies need to stay informed about the latest trends in accounting for leases to remain competitive and compliant.
In this article, we explore some of the key trends that are shaping the future of lease management and accounting, focusing on why leveraging technology, embracing automation and implementing lease management and lease accounting software is the best way forward.
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Digitisation and team collaboration
One of the latest trends in accounting for leases is digital transformation. Companies are increasingly moving away from paper-based processes and manual spreadsheets. With lease agreements, documents and data being digitised, consolidated and stored electronically in a single, easily accessible database, it is much easier to search and retrieve information andtrack lease expirations.
Digitisation enhances collaboration, which is especially important today with the rise of remote work. Lease management and lease accounting software solutions enable collaboration and document sharing between team members from different locations facilitating a seamless remote experience. With the ability to access lease data from anywhere, businesses can streamline collaboration between various teams and departments and improve strategic decision-making.
Centralisation and data analytics
Centralisation is one of the latest trends in accounting, and the shift to cloud-based lease management solutions is accelerating. Companies are moving away from disparate systems and fragmented data towards a unified platform that offers a holistic view of all lease-related information.
Moreover, cloud-based platforms offer significant scalability, accessibility and data security advantages. Cloud solutions also frequently receive updates, helping achieve compliance with changing regulations. Thus, centralisation not only simplifies lease management and lease accounting but also ensures consistency and accuracy in reporting, crucial for compliance with standards like IFRS 16 (AASB 16).
In addition, the use of data analytics is becoming increasingly prevalent in lease management. New technologies enable businesses to extract valuable insights from their lease data, such as identifying cost-saving opportunities, predicting maintenance needs, and optimising space utilisation. helping organisations gain deeper insights into their lease portfolios.
Automation and workflow optimisation
Lease accounting automation remains a cornerstone trend, especially with the increasing complexity of lease portfolios. Automated workflows are crucial for managing leases effectively and helping make tasks like payment scheduling, lease term tracking and compliance reporting more efficient by assisting in reducing manual workload, minimising errors and promoting adherence to accounting standards.
When considering implementation of automated systems, it is important to look for one that incorporates smart workflow capabilities that guide users through each stage of the lease lifecycle from initiation to termination, helping ensure that all necessary steps are taken, deadlines are met, and compliance is maintained. This approach streamlines operations and reduces the risk of oversight.
Increased regulatory compliance
Lease management and accounting are becoming more complex due to evolving regulatory frameworks. The implementation of new lease accounting standards, such as IFRS 16, has forced companies to be more transparent in reporting their lease obligations. Organisations across various industries are under pressure to ensure compliance with accounting standards, tax regulations, and environmental sustainability requirements. Lease management systems are being updated to accommodate these changes seamlessly, helping companies stay compliant, avoid penalties and maintain financial transparency.
Managed services
There's a growing trend towards managed services in lease accounting, where companies seek software solutions, expert support and ways to outsource certain aspects of lease accounting. This trend is driven by the need for specialised expertise and the desire to focus internal resources on core business activities.
When choosing the technology solution for your business needs, look for one that offers managed services and guidance beyond just providing software. A dedicated team of professionals can assist in managing your lease portfolio, helping you get the most out of our software, stay compliant with evolving regulations, and make your company go a long way.
The future of lease management and lease accounting space is marked by greater complexity, increased regulatory scrutiny, the need for data-driven decision-making, and a heightened focus on managed services. To thrive in this evolving landscape, businesses must embrace the latest trends in accounting for leases and implement lease management and lease accounting software. Software solutions streamline lease administration and offer flexibility to adapt to changing regulatory environments and emerging trends, such as digitisation and automation.
Nomos One lease management and lease accounting software offers companies the ability to centralise data, automate processes, access real-time insights and help businesses achieve compliance with complex lease accounting standards. It provides advanced automation capabilities that can simplify and optimise practices, making lease management and lease accounting more accurate and less time-consuming. It empowers organisations to adapt to the challenging environment and make informed, strategic decisions. In addition, Nomos One offers help with managing property and asset portfolios. Book a demo today to learn more!
