Who needs to automate?
All companies can benefit from automation. Of course, the more complex the organisational structure and the larger the lease portfolio will determine the level of automation required to maximise the return on investment. This doesn’t have to be expensive – there are a range of solutions at price points to suit all companies and accounting practises.
What solutions are there?
Solutions fall into four archetypes: manual; calculator; engine and platform. These offer increasing levels of automation depending upon the complexity of the leasing environment into which they will be deployed. It is important to remember that although automation delivers savings and efficiencies post initial compliance, many of the solutions in the market have underestimated the complexity of the core accounting. Regardless of the solution that is right for you today, ensure that the vendor has a proven track record of audit compliance and has the support infrastructure to help your organisation to stay compliant.
What’s the difference?
In a nutshell, the difference in the archetypes is the level of process automation that that the solution delivers. Typically, calculators require a lot of manual management and do not have the key audit controls inbuilt such as a hard close for month end. This solution can be adequate for smaller portfolios of simple asset types such as cars. However, once a complex organisational structure and more complex asset types such as properties are included in the mix, it is more effective from a cost and risk perspective to implement a more robust solution that manages and records modifications efficiently. For distributed operations, the system must have a simple to use yet powerful communications workflow capability to ensure completeness and accuracy.
Once an organisation has optimised ongoing lease management and compliance, it is time to innovate. This is where the Platform delivers real cost savings to your business with the introduction of end-to-end lifecycle management. From corporate governance to sourcing and automating the recording and management of the lease, this is where significant cost savings can flow.
The challenge is how to quantify an ROI for any system investment. Key considerations include the cost of capital in real terms and also the opportunity cost of deploying valuable resources in low value repetitive work. Use the LeaseAccelerator ROI tool to help you to maximise your use of capital and realise savings through better lease management.
The LeaseAccelerator suite of systems allows your organisation to start the journey at the point that makes sense for you in the knowledge that you can move to the next stage when you are ready leveraging your initial investment. The LeaseAccelerator Platform is audited three times a year for SOC1 Type 2 compliance and also audited for SOC 2 Type 2 compliance. The LeaseAccelerator accounting engine manages over 5 million assets, delivering 8 billion journal entries. Our in-system support, ‘Ask Alex’ provides a stress free user experience. We are nice people to do business with. Test us.
To hear more about automating the lease accounting close, watch our recent webinar.