Co-founder and CEO at DebtBook.
It truly is no mystery that engineering-pushed adjust has been impacting nearly each market to some diploma. For finance teams constantly becoming asked to do more with considerably less, it’s becoming significantly essential to locate superior equipment that are tailor-made to deal with their specific problems.
And now with the Governmental Accounting Specifications Board (GASB) and Financial Accounting Requirements Board (FASB) pushing out new expectations, finance groups should also navigate the complexities and needs of that assistance. The good news is that technologies can allow organizations to work a lot more effectively, collaborate additional efficiently and make far more educated choices, as properly as become and remain compliant with new lease accounting requirements. The caveat? The achievements of your know-how initiative can arrive down to picking the ideal alternative for your firm and your distinct use situations.
As you consider lease management software platforms, take into consideration the soreness points you are on the lookout to tackle, what features and capabilities are crucial to enterprise functions and no matter if the seller will be ready to proficiently handle your marketplace-precise programs.
Component 1: Use Circumstances
Finance groups invest an inordinate amount of money of time doing the job with cumbersome, static spreadsheets (or even binders of paperwork!). But these varieties of software packages and processes have not advanced at the same tempo as the sector, typically resulting in just one or extra of the adhering to troubles:
• Info silos: Lease abstracts, contracts, economic experiences and other crucial documents may well be scattered all over the business, spread across different equipment, devices and even folks. This fragmentation can sluggish down enterprise functions, maximize the probability of problems and trigger miscommunication. An efficient solution will break down individuals silos and aggregate the details into a solitary source of truth of the matter.
• Inaccurate details: It’s no mystery that spreadsheets are inclined to mistakes and inaccuracies. When your group operates on details in a fragmented vogue, it exposes the organization to calculation faults, typos and human glitches such as double entry or facts reduction. These faults compound until eventually they turn out to be significantly harder (and most likely much more pricey) to correct. An productive option must retain a history path, lessen opportunities for mistakes and allow assurance in your data.
• Ineffective reporting: Out-of-date programs and guide procedures imply that making reviews, journal entries, and notes for audit can be incredibly time-consuming and choose time absent from far more benefit-include routines. An efficient resolution really should develop audit-prepared notes, routinely deliver journal entries and make standardized money reports.
• Compliance: Planning for the implementation of new lease accounting requirements can be a pretty time-intense method, using wherever from a number of weeks to a number of months based on the quantity of money paperwork and sizing of the finance workforce. An effective resolution will assistance finance groups carry out new assistance by automating manual processes, guiding you via the workflows and generating reviews.
Component 2: Characteristics And Capabilities
Lease management application applications really should permit your crew to help save time on handbook facts entry, generate reporting that you will have self-confidence in, and assist the corporation put into practice and maintain compliance with new lease accounting criteria. Consider the following questions as you go through the evaluation process:
• Is the platform intuitive? You will need a solution that will be quick to discover, use and navigate — even for all those teammates who may perhaps not be tech-savvy.
• Will the information be available and reliable? In the progressively remote environment in which we obtain ourselves, business continuity requires any place, any time obtain to details. Using it one phase further, you need to have to be able to belief that the info is the most up-to-date variation and that it is accurate.
• Does the option enable collaboration? You are likely working with several internal and external stakeholders, which include CPAs, lawyers and auditors. Does the system allow sharing of critical info so that every person stays up to day and knowledgeable?
• Does the software meet monetary reporting criteria? You want a solution that saves time and optimizes methods. That usually means developing experiences, notes and journal entries that are presently compatible with Excellence in Economical Reporting criteria.
Element 3: Vendors
The sector is flooded with suppliers who tout lease administration abilities. But generic, a single-size-matches-all options might not satisfy the specialized niche desires of public sector businesses or they might have irrelevant features that get in the way. Maintain the pursuing issues in intellect as you select a software program remedy:
• Does the seller have business expertise? Finance teams in the public sector have one of a kind needs, discomfort factors and worries. The seller that you decide on really should realize these distinctions, have functions and features tailor-made to marketplace-appropriate eventualities, and have a shopper help team with industry expertise.
• What are the option provider’s programs for upcoming solution growth? With the present GASB steerage and new lease accounting criteria by now slated for the speedy foreseeable future, a static solution will not be effectively-geared up to assistance your firm adapt to the shifts in the industry. Glance for a seller who often pushes out new attributes and features, has an revolutionary street map and is constantly providing additional benefit.
• What does the onboarding and coaching program look like? Regardless of your enjoyment for new computer software, the most significant challenge for your group will be the standing quo: It is a lot easier to do absolutely nothing than to do some thing. Will the seller be carrying out the heavy lifting of implementation with a individualized onboarding experience or white-glove assistance, this sort of as arranging your leases, cross-examining them towards requirements and extracting assumptions? Does the seller have a background in finance or accounting, will they be in a position to comprehend the nuances of your business, and will they be certain your platform is tailored to your requirements through onboarding? Does the seller have a formalized onboarding application with a variety of sources obtainable for ongoing teaching?
• What about stability? Cybercriminals can assault governments with courses this kind of as ransomware. What are the vendor’s guidelines all-around knowledge safety, access and reliability, and encryption?
Navigating the fintech landscape can be overwhelming. As you evaluate lease management software for your firm, continue to keep in intellect your team’s biggest challenges and make certain the solution aligns with your present-day and long run requires.