Adrian JohnsonTLDR:
- Leveraging technology and software is crucial for organizations handling lease accounting.
- A shift from spreadsheets to dedicated lease accounting software is necessary to improve efficiency and accuracy.
As we enter 2024, the use of technology and software has become essential for organizations seeking substantial growth. This is particularly true for CPA firms and entities that deal with lease accounting, as the evolving standards and business practices have exposed the limitations of using spreadsheets. It is crucial for organizations to transition from spreadsheets to dedicated lease accounting software to improve efficiency and accuracy. This transition is expected to accelerate in the coming years as organizations abandon manual processes and error-prone spreadsheets in favor of automated lease accounting software.
Spreadsheets, which were once considered a sufficient tool for managing one or two leases, are no longer viable. The use of cost-effective software significantly enhances accuracy, efficiency, and streamlines ongoing lease management, even for smaller lease portfolios. Spreadsheets introduce vulnerabilities in data control and integrity. Auditing information spread across multiple sheets becomes laborious and prone to human error. For organizations with growing lease portfolios, software solutions offer scalability, customization, and a robust infrastructure to navigate the complexities of lease management.
Automation is crucial for seamless collaboration across CPA firms and their clients. Software solutions that facilitate multiuser access streamline cross-functional collaboration and ensure compliance with lease accounting standards. Compliance errors in lease accounting can be costly, especially when auditors and banks scrutinize the transition to new standards. By shifting from spreadsheets to software, organizations can ensure ongoing compliance and avoid these costly errors.
Data management requires technology and automation for effective handling. Spreadsheets make maintaining data control challenging, resulting in time-consuming cross-checks across multiple sheets. In contrast, lease accounting software guarantees reliability, flexibility, and centralized data, automating recurring tasks and allowing staff to concentrate on strategic initiatives.
By using lease accounting software, accounting teams can focus on the accuracy of data inputs. The current lease accounting standard requires thoughtful decisions on inputs like lease term, which results in financial statements that reflect an organization’s financial health more accurately. Great software not only provides accurate calculations but also offers an easy-to-follow workflow and guidance to ensure the correctness of inputs.
Teams using lease accounting software gain comprehensive insights into metrics, empowering decision-making on occupancy, income, renewals, and more. Compliance and forecasting rely on precise tracking and reporting, which is not attainable with spreadsheets. CPA firms are increasingly adopting software solutions to elevate their services and keep up with technological advancements. There is predicted growth in the lease accounting and management market, indicating a recognition of outdated processes and the need for purpose-built software to optimize operations.
In conclusion, technology and software have become essential for organizations handling lease accounting. The transition from spreadsheets to dedicated lease accounting software improves efficiency, accuracy, collaboration, and compliance. Organizations need to embrace technology tailored to their evolving needs to ensure sustained growth and success in today’s dynamic business landscape.
