With lease accounting standards changing and getting updated, you might also want to consider an update to your current lease management software. It is an investment, yes. It will require money and time as well as transitional management. However, it must be said that newer software might just be able to help your business run more efficiently. How exactly? Well, let’s look at five potential pros for updating your current lease software.
Compliance with the new accounting standards
Of course, the first obvious benefit of implementing new software is that they are already made to comply with the new accounting standards like IFRS 16, AASB 16, ASC 842. Some changes in the regulations now require updating and alter the way that lease accounting needs to be done. For legacy software users or those that utilize Excel calculators this just isn’t possible.
Adjust to the new lease definitions, follow the impacts of cash flow on leases, cover asset turnover and other metrics as well account for them on the balance sheet. New software will have you covered.
Lease management software will give you more insight
More modern lease software comes equipped with more capable analytical tools. For example, more and more modern software solutions come with versatile AI capabilities. Artificial intelligence is mostly used to automate verification as well as provide insights into the current market situation as well as forecast the future.
With more advanced tools you can get in-depth with your current portfolio and spot weaknesses as well as USPs.
Room for collaboration
A lot of leasing companies have their own network of subsidiaries, brokers, and dealers. More advanced software solutions can build a centralized network and a link between the parent company or the leasing company and the subsidiaries and brokers, dealers respectively. This ensures practical benefit as your salespeople can generate leads and follow up on them. Furthermore, brokers and dealers could be granted access to generate quotes for their own clients, speeding up the leasing process on your end.
More secure data storage
In the age of information and digitization, there’s an increased focus on data security. This is especially crucial to legacy software users or those that employ tools with outdated security. Don’t risk your reputation and integrity with unsafe software.
Move over to new tools that are developed around stricter and more demanding measures for data security. This added security doesn’t obstruct the functionality or accessibility of the software, however. Cloud-based management software for leasing companies is even easier to access than its predecessors.
Better for audit purposes
Any kind of newer software for leasing (for example equipment lease management software) is usually offering more in terms of readiness for an audit than its previous generations. Your state-of-the-art software should be able to track changes that you’ve made over time and have historic logs for specific timeframes.
Tracking numbers for audit manually is especially demanding, difficult, and usually almost impossible. This is why you should upgrade if you already haven’t.
