Automatically account for variable rents every month faster
For retailers and many other organizations, a variable rent agreement is smart business — allowing them to strike a balance between monthly lease costs and sales revenue. And lessors have the opportunity to earn royalties or a higher rent when business is good. But from a lease accounting perspective, variable rent can mean manually entering and reconciling those figures every month, often for a large number of locations and different types of operations.
Visual Lease brings order to this potential chaos by automating variable rent accounting, to streamline the process, save valuable time, and eliminate errors.
Handle any kind of variable rent
Because having different rents every month has an impact on total liability, your journal entries and balance sheet need to take into account the peaks and valleys of the variable rents paid every month.
With Visual Lease, you can create custom formulas to automatically take in sales data and calculate the variable rent paid each month. In addition to sales percentage-based rents for retailers, Visual Lease can handle any kind of variable rent for non-retail organizations paying a monthly percentage to a lessor. For example:
- An energy company with land lease royalties
- A wine producer leasing a vineyard
- A bridge authority splitting tolls with a municipality
- A parking authority sharing fees with a town
Get an accurate picture of liability
When you have to account for variable rents, Visual Lease delivers the tools to fully automate the process — not only eliminating time-consuming and error-prone manual data entry, but also automatically creating your journal entries.
With custom formulas for each lease automatically calculating the variable rents paid AND including them in your monthly lease accounting entries, you can be confident you have a complete and accurate picture of liability.