Preparing to implement lease accounting software is often a complex process. Many businesses struggle with the timeline, internal resource limitations, and ensuring data accuracy, which can lead to costly delays and errors.
In this article, we will address how you can benefit from third-party lease accounting implementation services, the range of services available, and the value you can expect to gain from working with experts who have already helped numerous companies through this process.
Why work with an outsourced lease accounting implementation services provider?
Expertise & Experience
Outsourcing lease accounting software implementation provides businesses with access to specialized expertise and experience that in-house teams may not have. Implementation trams know the complexities of lease accounting standards like ASC 842 and IFRS 16, ensuring that your software is set up correctly and meets all compliance requirements.
Visual Lease’s team has managed multiple implementation projects across different industries and has the expertise a company may need when implementing a new lease accounting software. By working with a third-party team, you benefit from their knowledge, simplify the process, and ensure a smooth and compliant implementation.
Avoiding false starts
Part of the reason companies underestimate the timeline is because they do not know what they do not know. There is a learning curve involved in this process and a great many decisions to be made. Companies jumping into the process without the guidance of an expert often make mistakes that waste time and money. With lease accounting implementation services, you gain the advantage of experience and avoid those mistakes.
“Often companies need to pivot from work already performed after months of effort,” said Steven Sayewitz, a Manager at Riveron, focusing on lease accounting system selection and implementation. “By getting into the details and discussing policy decisions and approach, areas of consideration come to light which may not have been initially considered.”
“Companies can limit re-work by engaging with experts early on to help them through the initial questions and planning.”
Sharing the load
A great deal of time-consuming work is needed to get prepared for implementing a new lease accounting software. Collecting lease data and preparing the data for your lease accounting system is probably the biggest task. However, there are additional tasks that may prove surprisingly difficult for those who are not experts, such as choosing the right lease accounting software, and developing new processes and procedures for gathering, updating and reporting on lease data.
Consultants providing lease accounting implementation services can take some or all of those tasks off your plate, freeing up your staff to focus on other tasks and initiatives.
Improved Data Accuracy & Compliance
Data accuracy is critical when implementing lease accounting software, and errors can lead to financial reporting mistakes and non-compliance with accounting standards. Third-party implementation service providers use validation processes to ensure that the data being migrated is accurate and complete. They’re prepared to handle data discrepancies and correct these issues before they cause problems.
Faster Implementation & Reduced Delays
As was just discussed, In-house teams often will have to balance day-to-day responsibilities and the implementation at the same time. An implementation team is solely focused on delivering a successful implementation and can dedicate the necessary resources to keep the project on track. Their experience allows them to anticipate challenges and resolve them quickly, avoiding common mistakes that would cause delays.
Preparing for day 2 (Post-implementation)
The right lease accounting implementation services partner can facilitate development of policies and procedures that not only get you ready to help you maintain compliance for years to come.
What implementation steps can you outsource?
Lease accounting implementation services can include any or all of the following steps:
Initial assessment: reviewing your complete lease portfolio and identifying everything that qualifies as a lease.
Controls and policies development: developing processes and approvals to ensure valid data, and advising on policy decisions that minimize time while mitigating risk, such as decisions about when to take practical expedients.
Project management: overseeing your lease accounting implementation process and keeping all involved parties on track.
Software selection: knowing the strengths and limitations of software providers and identifying the ideal solution for your specific needs.
Gathering data: collecting lease information from decentralized sources throughout your organization.
Lease abstraction: extracting the relevant clauses from your contracts.
Data preparation and transfer: aggregating and normalizing lease data from many sources, centralizing and moving into your lease accounting database.
Testing and validation: robust accounting testing and checks and balances to make sure your reporting results accurately represent your lease portfolio.
Process development for Day 2: developing a plan for maintaining compliance, including policies and processes for ongoing collection and updating of lease records.
Cost and value of lease accounting implementation services
Given the looming deadline, escalating the timeline is enough of a reason to consider lease accounting implementation services. But, companies also want to understand the value they are getting for the expense.
Sayewitz emphasized that when you choose an experienced advisor, lease accounting implementation services can easily pay for themselves by giving time back to your internal staff.
“If internal resources are tasked with figuring out what the guidance requires, systems to adopt, and creating new processes for day 2, inevitably some productivity loss around day-to-day responsibilities will occur,” said Sayewitz.
And, there is additional ROI that comes from using lease accounting implementation services that most organizations overlook. It creates the basis for accurate financial reporting, and helps develop streamlined processes, enabling those responsible for accounting of leases to focus more on the financial impact and opportunities for lease spend cost savings.
Visual Lease’s Implementation Services
Outsourcing your lease accounting software implementation to an implementation service provider offers many advantages. By working with professionals who have managed hundreds implementations across industries, you can avoid common mistakes, stay compliant, and position your company for long-term success. If your company is looking for assistance with lease accounting implementation services, contact Visual Lease. Our team can help with a fast, efficient, and compliant migration to our platform.
Want to learn more? Schedule a demo today to get started.
