Spring cleaning is an annual tradition across numerous households. It’s a great time to freshen up your home, clean out your closets, and get rid of unnecessary clutter. This spring, consider taking your cleaning a step further and de-clutter your lease accounting.
Because spring is all about fresh starts, the new standards are a great reason to rethink the way you handle your leases. Below we list our top tips for spring cleaning your lease accounting data.
Make a schedule
It’s easy to procrastinate when you need to clean. Watching television is easier than cleaning out our cluttered closets. The same holds true for the lease accounting transition. We recommend you don’t wait until the last minute to scramble to collect your lease data and work towards compliance.
According to organizations that have undergone the process, adopting the new standards will take longer than anticipated. Start the transition process now to ensure compliance by the effective date.
Declutter your lease date
According to cleaning experts, clearing away clutter relieves stress. That also applies to your lease data. A messy, disorganized spreadsheet or unreconciled lease accounts will make the transition much more stressful than it needs to be. It’s time to declutter your lease data and organize it into a proper inventory.
You need to be thorough when you create your lease portfolio. Double-check for embedded leases and then consolidate all of your data into one place using a lease inventory template, such as our lease asset tracker. Ensure no data is misread or misinterpreted by having every department use the same template.
Get everyone involved
Cleaning an entire house is a lot of work, and it’s more efficient to delegate the chore as smaller tasks for different people to tackle. Similarly, the lease accounting transition runs smoother when everyone is involved in the process. All departments need to be on the same page.
Once each department has provided their lease data, cross-check it for completeness against actual contracts and rent account transactions. You will need to continue collaborating with various locations and departments to make sure all of the data is thorough and organized. Efficiency and meticulousness are the keys to any good spring cleaning.
Use lease accounting software
The best way to tackle your spring cleaning is to have the right supplies. Lease accounting software is to your lease data what a caddy is to spring cleaning equipment. It helps keep things organized, puts needed tools right in your hands, and enables efficiency.
Benefits of using a software
Implementing an accounting software, like LeaseQuery, provides multiple benefits to your business, such as
- Improved budgeting and forecasting
- Reminders for critical dates and renewals
- Better interdepartmental communication
- Smoother post-transition audits
- Easier access to contracts and documents
Summary
Spring cleaning makes it easier to stay organized throughout the year. By decluttering your lease accounting now, you’re setting your business up for a better future. It will be easier to track your lease data and comply with the new standards, but the benefits don’t stop at compliance.
Using the right software will enable your team to work more efficiently, improve the audit process, and make smarter financial decisions for years to come. LeaseQuery is fully compliant with ASC 842, GASB 87 & 96, and IFRS 16. Schedule a demo today to start decluttering your lease accounting.
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