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Beyond the FASB lease accounting compliance deadline

 
New standards provide an opportunity to improve lease accounting processes

As organizations implement the necessary systems and processes to meet the new Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) deadline, forward-thinking leaders view the new regulations as a strategic opportunity. These savvy leaders could implement a system that simply meets the minimum requirements. Instead they take it a step further. To reap the maximum benefits from systems and processes, they view this as an opportune time to drive digital transformation.

Having a purposeful plan for your lease administration system enables you to move beyond compliance to digital transformation. Digitization also solves challenges such as data silos, duplication of efforts for managing data and an inability to quickly track down information when it's needed. In the end, a bit of additional effort could possibly save a business hundreds of thousands of dollars.
 
Digital transformation replaces manual work with automated processes that enable active insights into data for proactive planning. While helping to ensure the lease data in your system is compliant, you can also make decisions about other lines of business (LOBs). But it takes someone with vision to make that happen.

​The total possible impact of new FASB regulation could reach as much as $2 trillion for U.S. companies.*

 
We understand how leasing compliance can be an opportunity to help drive digital transformation across your business. RICOH Lease Administration Services has the people, processes and technology to help you make ongoing lease management and compliance sustainable, while driving digital transformation.
 
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Don’t settle for the status quo: improve lease administration processes
 
Before implenting New FASB IASB lease accounting compliance BPO to help meet lease accounting standards and manage data, it’s important to examine your existing procedures. Mapping this out will help identify where FASB/IASB compliance changes need to be made and where improvement opportunities exist. Just a few of the steps in the process towards digital transformation include:
 
  • Identifying the required inputs and lease data.
  • Locating all leases — which are likely scattered across departments, systems, buildings and even geographic locations.
  • Planning data conversion and migration capabilities for bringing lease data into the system on an ongoing basis.
  • Implementing flexible integration capabilities to transfer data to ERP and other financial reporting systems.
  • Designing automated workflows, approvals, audit trails and processes.
  • Determining if you have other types of contracts that may have leases embedded in them.
  • Ensuring you have comprehensive reporting capabilities that enable data to be continually analyzed.

 

Plan your resources accordingly

In addition to building the functionality above, prepare for ongoing increases in the volume of lease data and detail. Real estate leases are only part of the equation. Add in equipment, vehicles and other types of leases more than 12 months in length, and you will find you have hundreds or thousands of leases to manage and keep in compliance. Furthermore, the new standards require more detailed information — some of which isn’t even being tracked yet. Spreadsheets and manual processes won’t be able to manage the sheer volume of lease data being generated.

Evaluate the scope of work to determine if your internal resources have the available bandwidth and expertise to accomplish this effort in-house.

If the endeavor and ongoing work is more than you can take on, consider our Business Process Outsourcing Services. Getting the most from lease information requires a comprehensive approach to digitizing, centralizing, managing, reporting and distributing data.

A team of lease administration experts examines your existing processes to uncover gaps, errors and manual workflows and identify areas to target for improvement or overhaul. Our legal team has extensive lease administration expertise to understand the legal context, extract the necessary information and ensure it is accurately input into leasing management software.

A strong expertise in change management means we know what works to get teams on board. We’ll provide training and ensure controls are in place to help you maximize your investment.

 
Get visibility into lease data

Lease data is most useful when it provides insight into the business. That requires turning raw lease information into organized, useful real-time data that delivers transparency and enables you to make decisions based on solid facts.

Digitization means you have capabilities, such as at-a-glance dashboards to see real-time lease data. It includes notification of upcoming critical dates, so you operate in a proactive mode, rather than reacting at the last minute.

Examine lease agreements before they come up for renewal and renegotiate on your terms. Review auto-renewals and terminate leases that don’t make sense for your business.

To accomplish these goals, ensure you have reports that help you plan ahead. Our services include more than 250 prebuilt reports, so you can get an in-depth picture of your lease function from many different angles. Compare lease data across locations, leverage economies of scale, examine lease details to ensure you’re getting the best terms and see the real material impact of leases on the business.
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Pattern and trend information guides strategic planning and investment decisions. By integrating with systems like AP, ERP and procurement, you can automate processes like AP and make lease administration information useful across the enterprise.

Analyzing lease data and taking proactive measures helps your business free up working capital, be more nimble and positively impacts the bottom line.
 
Help increase operational efficiency and agility
 
Using our proven data management processes, we’ll digitize lease data and standardize how it’s collected, stored and distributed, so your data flows automatically from system to system — all the way to the balance sheet. We deliver: 

  • Expert business process consulting analysis for an in-depth understanding of existing systems processes and workflows.
  • Abstraction services to effectively store, organize, and retrieve lease information.

Are you prepared for the new FASB regulations?

These actionable steps help strengthen your lease accounting processes and equip you for compliance and beyond.
 
  • Centralized lease administration functions.
  • Integration with LOB systems to support automation of ongoing lease administration services.
  • Planning and report management.
  • Ongoing compliance support.

Our services are delivered along with an advanced, cloud-based SaaS technology platform that centralizes and automates lease information management for an all-in-one solution.

 
Heidi Grosch
Heidi Grosch has over 15 years of experience driving the evolution of Business Process Outsourcing Services, collaboration methods and the power of data and analytics. She brings a passion for learning about customer objectives and the intricacies of their challenges, identifying synergies and developing services that provide predictable and positive impact for their organizations to unleash the power of their data.
 
 

* Michael Rapoport. "Coming to a balance sheet near you: $2 trillion in leases." The Wall Street Journal, November 10, 2015. https://www.wsj.com/articles/leases-to-put-new-weight-on-corporate-balance-sheets-1447200831