On-demand webinar summary
The latest report from The Visual Lease Data Institute (VLDI) features key findings and insights into market readiness for private companies and government entities. In our recent webinar, 2022 Lease Market Analysis: Lease Accounting Readiness, we dove into the latest insights from The VLDI Report, including:
- Common lease accounting challenges for private companies and the public sector market
- Benefits of strong lease controls and accounting
- How to leverage your lease data to make smarter, faster decisions
Read the summary below for a quick synopsis of the presentation, view the webinar on-demand, or view the report.
Common lease accounting challenges for private companies and the public sector
Today, one-third (33%) of private companies are still not fully prepared to transition to ASC 842.
And despite the GASB 87 effective date being six months earlier (June 15, 2021), an even larger portion of the public sector (44%) is not fully prepared to transition to GASB 87.
Why? The reasons for delayed implementation and maintenance of the standards are due to:
- Potential talent shortages & retention issues
- Ninety-three percent (93%) of private companies say their team is already stretched thin, making the transition to compliance with ASC 842 even more overwhelming.
- Similarly, (86%) of public sector entities say their team is already stretched thin, making the transition to compliance with GASB 87 even more overwhelming.
- Demands of ongoing education
- Knowledge maintenance was ranked as a top obstacle that private companies (33%) had to overcome throughout their lease accounting processes.
- One-third (31%) of public sector entities ranked knowledge maintenance as a top obstacle they had to overcome throughout their lease accounting process.
- Digital transformation challenges
- Thirty percent (30%) of private companies reported adopting new technologies as a leading obstacle in their lease accounting projects.
- Nearly forty percent (38%) of public sector entities cited challenges in adopting new technologies into the lease accounting process as a top concern.
How to take control of your lease data
The time commitment of gathering and managing lease data is another reason why organizations are not fully prepared for ASC 842 and/or GASB 87. It’s an incredibly large team effort that requires automation and cross-departmental team effort. In fact, private companies that are not using third-party software expect to spend 1,582 hours gathering all necessary lease information.
However, private companies who used third-party lease accounting software were able to save an average of 600 hours and public sector entities were able to save an average of 765 hours in this effort.
For more information about lease management, view the on-demand webinar: 2022 Lease Market Analysis: Lease Accounting Readiness.