Benefits Of Using Leasing Software
Accounting software has a diverse role to play in the financial management of modern businesses, and among the many functions that it facilitates, lease accounting is one the most crucial these days. From managing renewals, important dates, and databases to effectively making budgeting and financial decisions, lease software is able to go well beyond just compliance. The benefits that can come from these tools are ideal for today’s businesses to grow and achieve sustainability.
At present, 85% of companies in the US have lease accounting software to streamline their portfolio management. These programs offer significant advantages as 98% of lease companies use simple spreadsheets for the purpose but unsurprisingly, only 10% trust the accuracy of insights they obtain from it. For 73% of companies, enhanced accuracy of data is the leading benefit of using lease accounting software. Improved efficiency is second at 68%, and better compliance is ranked third at 63%.
Here is a detailed look at some of the benefits that a lease accounting software can offer to your company:
1. Better forecasting and budgeting
How much will your company spend on leases in the upcoming year? Are you able to estimate your spending by department, area, or business unit? You can gain more knowledge of your lease contracts and the financial information they contain than ever before, thanks to the enormous amount of information stored in a lease accounting system. Software like LeaseAccelerator can effectively streamline respective processes and answer questions like these accurately.
Simply using an Excel spreadsheet will leave you and your team with some complex calculations to perform independently. On the other hand, lease software can churn the data and deliver actionable results for various actions like budgeting, forecasting, and strategic decision-making. The power and capability modern lease software possess has been growing extensively, allowing business managers to save time, effort, and a host of other resources that can be used more optimally by businesses.
2. Keep tabs on important dates effectively
The business of leasing is all about having important dates readily available. From the date when the lease payment is due to the contract’s expiration date, each time stamp holds an integral place in overall business operations. With simple Excel spreadsheets, your business can miss a lot of deadlines, resulting in delayed payments and accrual of late fees on the part of customers, which inconveniences both parties involved. It is frustrating and a waste of resources that can once again be better utilized elsewhere.
Instead of manually being flagged about every important date, in most cases by a member of the team personally, the use of sophisticated lease software makes the process much more efficient. Not only is there minimal room for error with a digital tool, but each important date automatically comes to attention through notifications that can vary from one software to the other.
Furthermore, you’ve probably recognized agreements in your holdings your business shouldn’t renew, particularly if your business has already made the transition to the updated accounting regulations. Leases with expired contracts that no longer make economic sense could fall under this category. You can avoid squandering money on these and missing opportunities to bargain for better leasing contracts by setting up important notification pings for these critical dates.
3. Seamless coordination between departments
Most often than not, a leasing business has several different departments managing the portfolio. Each of these divisions has its own objectives when it comes to contracts, like either churning the most profit for the company or mitigating risk factors. In order to do this more effectively, departments need to actively coordinate with one another. This has become the hallmark of modern, sustainable organizations because it is a widely accepted way to do business today.
Through lease software, interdepartmental coordination becomes a breeze. Some businesses think that online spreadsheets like Google-backed services can solve this problem because the documents are available digitally through that too. However, since these tools are not custom-made for accounting or lease management, they can become a hassle in terms of access and convenience. Lease software is able to provide streamlined access to all departments for all the files that they’ll need for the effective execution of their respective tasks.
4. The auditing process becomes more streamlined
It goes without saying that efficiency improvements or advancements in auditing make things simpler. Your auditors don’t appreciate when it is part of their job to continuously ask for reports and other paperwork because it’s a hassle to respond to those requests. Everyone’s job becomes simpler by using intuitive lease accounting software that allows the business to grant its auditors and other stakeholders read-only access to the database. You won’t have to worry about delivering the needed documents because they can then log in and retrieve the required reports and data.
5. Easier and more convenient access to important documents
Following the abovementioned point, access to important documents becomes more prompt and swift through lease accounting software. With a conventional system, your business will find itself digging through piles of PDF and Excel documents to find relevant paperwork. And no matter how well things are organized on the server with folders and sub-folders, retrieving an agreement that is several years old can become a nuisance. On top of this, sharing of these documents is another challenge.
This is where lease accounting software becomes integral to the whole operation. Through their cloud-based support and centralized databases, a business is able to access vital documents much more effectively. Every contract, every citation, and every past agreement is available to different departments with a few clicks. This saving in time and effort makes your teams more productive, allowing them to handle things more efficiently, with fewer errors and higher customer satisfaction.
Technology-backed tools, particularly software, have made businesses more productive and less wasteful when it comes to resources. For leasing businesses, lease software not only facilitates compliance with the latest accounting standards but also improves the overall ability of the business to manage its portfolio. From assisting decision-making like forecasting and budgeting to streamlining the process of accessing documents, the latest tools have diverse features that make work much easier and hassle-free. All in all, there is a reduction in human error and eventual cost-savings that aid in your business’s sustainability.