iLeasePro Releases Auth0 for Enhanced Security and User Experience

iLeasePro Secure Solution

iLease Management LLC (“iLease”), a leading provider of the iLeasePro ASC 842 lease accounting and lease management solution, announced today a significant security enhancement to its iLeasePro platform.  iLease released a new security feature integrating Auth0 to streamline the authentication process and further enhance data security for its users.

In its relentless pursuit to continue to deliver a high quality cost-effective solution, iLease has taken another step forward by partnering with Auth0 by Okta, a globally recognized platform for identity management. This strategic addition to iLeasePro’s feature set underscores its commitment to providing users with secure, seamless access to its comprehensive lease accounting solution.

iLeasePro’s integration with Auth0 offers its users secure and simplified single sign-on (SSO) capabilities, multi-factor authentication, and adaptive authentication based on user behavior and location, creating a safer, more secure user environment.

“User experience and data security are the twin pillars of our service model. The incorporation of Auth0’s leading authentication protocols will not only enhance our security framework but also provide a seamless and user-friendly interface,” said John Meedzan, CEO of iLease. “Our clients trust us with their data, and this integration reinforces our commitment to their security.”

The iLeasePro Auth0 integration supports the ongoing scalability needs of the platform, allowing iLeasePro to continue its growth while providing an efficient and secure enterprise solution.

Increase Your Ability to Comply to the ASC 842 Lease Accounting Standard. Try iLeasePro for free right now; https://www.ileasepro.com/signup/free/

You can take a video tour of iLeasePro or schedule some time on our online demo calendar to see how iLeasePro can help you and your firm comply to the ASC 842 Standard.

Importance of Critical Date Notification in Lease Management: Ensuring Compliance, Planning, and Risk Mitigation

iLeasePro Critical Date Notification

Critical date notification is important in lease management for several reasons:

  1. Timely Action: Leases often have important deadlines and dates associated with them, such as rent payment due dates, renewal or termination notice deadlines, option exercise dates, and maintenance or repair obligations. Critical date notification ensures that the relevant parties are aware of these dates well in advance, allowing them to take appropriate action in a timely manner. Without proper notification, there is a risk of missing important deadlines, which can lead to financial penalties, legal issues, or the loss of certain rights or benefits.
  2. Compliance: Lease agreements are legally binding contracts, and failure to comply with the terms and conditions specified in the lease can have serious consequences. Critical date notification helps both landlords and tenants remain compliant with their obligations. For example, if a tenant is required to provide a notice of intent to renew or terminate the lease within a specific timeframe, timely notification ensures that they meet their contractual obligations and avoid potential disputes or automatic lease extensions.
  3. Planning and Decision-Making: Lease management involves strategic planning and decision-making. Critical date notification allows property owners, landlords, and tenants to plan ahead and make informed decisions based on upcoming lease events. For instance, notification of a lease expiration date well in advance enables landlords to begin marketing the property for new tenants, while tenants can start searching for alternative locations if they choose not to renew the lease. Timely notification provides the necessary lead time to evaluate options, negotiate terms, and execute decisions effectively.
  4. Financial Management: Lease agreements often involve financial commitments, such as rent payments, security deposits, or penalty clauses. Critical date notification ensures that parties are aware of upcoming payment due dates, allowing them to budget and plan accordingly. It helps prevent late payments, penalties, or disputes related to financial obligations. By receiving advance notice of rent increases, tenants can assess their budget and determine whether they can afford the new rental rate or need to negotiate with the landlord.
  5. Risk Mitigation: Critical date notification is a risk management tool. By proactively informing parties about key lease dates, it reduces the risk of overlooking critical obligations or events that may have significant financial or legal consequences. It allows for sufficient time to address potential issues, negotiate terms, or seek legal advice if needed. Timely notification helps minimize the chances of unexpected surprises and promotes a smooth lease management process.

In summary, critical date notification in lease management is crucial for ensuring compliance with lease obligations, facilitating informed decision-making, enabling effective planning, and mitigating financial and legal risks associated with lease agreements. It plays a vital role in maintaining transparent and efficient lease management processes for both landlords and tenants.

Auditing ASC 842 Lease Accounting: An Auditors Guide to Evaluate ASC 842 Lease Accounting Compliance

iLeasePro ASC 842 Lease Accounting

When an auditor evaluates a company’s implementation of ASC 842 lease accounting, they generally follow a series of steps to ensure compliance. These steps may vary slightly depending on the specific circumstances of the company and the auditor’s approach. However, a general process is as follows:

  1. Understand the entity’s leasing arrangements: The auditor should review the company’s leasing contracts and gain a deep understanding of the nature of the arrangements, as well as any related policies and procedures.
  2. Evaluate the lease identification process: The auditor should assess the company’s process for identifying leases and ensuring that all lease contracts are properly accounted for under ASC 842.
  3. Review lease classification: The auditor should review the company’s methodology for classifying leases as either operating or finance leases. This involves evaluating whether the lease meets any of the following criteria:
    • The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.
    • The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.
    • The lease term is for the major part of the remaining economic life of the underlying asset.
    • The present value of the sum of the lease payments and any residual value guaranteed by the lessee equals or exceeds substantially all of the fair value of the underlying asset.
    • The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.
  4. Assess lease recognition and measurement: The auditor should verify the accuracy and completeness of the company’s calculations of lease liabilities and right-of-use (ROU) assets. This includes reviewing the company’s assumptions, such as the discount rate, lease term, and any variable lease payments.
  5. Test lease-related balances and disclosures: The auditor should perform substantive testing of lease-related balances, such as ROU assets, lease liabilities, and lease expenses. Additionally, the auditor should assess the completeness and accuracy of the company’s lease-related disclosures, as required by ASC 842.
  6. Evaluate internal controls: The auditor should assess the effectiveness of the company’s internal controls surrounding the lease accounting process, including the identification, classification, recognition, measurement, and disclosure of leases.
  7. Assess the impact of any lease modifications or reassessments: The auditor should review any lease modifications or reassessments that occurred during the audit period to ensure they have been accounted for correctly under ASC 842.
  8. Obtain management representations: The auditor should obtain written representations from management confirming the completeness and accuracy of the company’s lease accounting and disclosure under ASC 842.
  9. Conclude on the audit: Based on the audit procedures performed and the evidence obtained, the auditor should determine whether the company’s lease accounting and disclosures are in compliance with ASC 842 and whether any adjustments or modifications are necessary.

Increase Your Ability to Comply to the ASC 842 Lease Accounting Standard. Try iLeasePro for free right now; https://www.ileasepro.com/signup/free/

You can take a video tour of iLeasePro or schedule some time on our online demo calendar to see how iLeasePro can help you and your firm comply to the ASC 842 Standard.

Determining the Lease Classification under ASC 842 Lease Accounting Standard

The ASC 842, or Accounting Standards Codification Topic 842, is the accounting standard for lease accounting in the United States. It was issued by the Financial Accounting Standards Board (FASB) to improve transparency and comparability of financial statements by recognizing lease assets and liabilities on the balance sheet. Under ASC 842, leases are classified into two categories: finance leases and operating leases.

To determine the lease classification under ASC 842, follow these steps:

  1. Identify the lease: First, determine whether a contract meets the definition of a lease under ASC 842. A contract is considered a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
  2. Evaluate lease classification criteria: Next, assess whether the lease meets any of the five criteria for classification as a finance lease. If the lease meets one or more of these criteria, it is a finance lease; otherwise, it is an operating lease. The five criteria are:a. Ownership transfer: The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.b. Purchase option: The lease grants the lessee a purchase option that the lessee is reasonably certain to exercise.

    c. Lease term: The lease term is for the major part of the remaining economic life of the underlying asset. However, this criterion is not used if the commencement date of the lease falls at or near the end of the economic life of the underlying asset.

    d. Present value of lease payments: The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset.

    e. Specialized nature of the underlying asset: The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.

  3. Classify the lease: Based on the evaluation of the criteria, classify the lease as either a finance lease or an operating lease.
  4. Accounting treatment: Once the lease classification is determined, apply the appropriate accounting treatment. Finance leases require recognition of a right-of-use asset and a lease liability on the lessee’s balance sheet, while operating leases require recognition of a single lease expense on a straight-line basis over the lease term. Different rules apply to lessors, but they also classify leases as either sales-type, direct financing, or operating leases based on similar criteria.

Remember that the lease classification process may require significant judgment, particularly in evaluating criteria like the lessee’s certainty of exercising a purchase option or the lease term relative to the remaining economic life of the asset. It is essential to consider all relevant facts and circumstances when classifying leases under ASC 842.

iLeasePro simplifies the process to classify a lease!

Check out iLeasePro’s ASC 842 Lease Classification Wizard

iLeasePro ASC 842 Lease Classification Wizard
iLeasePro ASC 842 Lease Classification Wizard

 

Try iLeasePro for free right now;

https://www.ileasepro.com/signup/free/

You can take a video tour of iLeasePro or schedule some time on our online demo calendar to see how iLeasePro can help you and your firm comply to the ASC 842 Standard.

Implementing Top 10 Lease Accounting Internal Controls to Ensure Success

iLeasePro Internal Controls for Lease AccountingImplementing new processes and internal controls is crucial for ensuring accurate and timely lease accounting under the new standards. Here are some key processes and controls to consider:

  1. Lease identification and inventory: Establish a process to identify and track all lease agreements, including embedded leases within service contracts or other arrangements. Maintain a comprehensive lease inventory with relevant information such as lease terms, payment schedules, and classification.
  2. Lease classification: Develop a consistent methodology for classifying leases as operating or finance leases based on the new accounting standards. Implement a review process to ensure lease classification is accurate and consistently applied.
  3. Lease measurement and calculations: Create a standardized process for calculating lease liabilities and right-of-use (ROU) assets, including determining appropriate discount rates and lease terms. Implement controls to ensure accurate and timely calculations.
  4. Journal entries and account reconciliations: Develop a process for recording lease-related journal entries and reconciling lease accounts in the general ledger. Implement periodic account reconciliations to verify the accuracy of lease balances and transactions.
  5. Lease modifications and reassessments: Establish a process for identifying and accounting for lease modifications, such as changes in lease terms or payment amounts. Regularly reassess lease agreements for any changes that may require adjustments to lease accounting.
  6. Disclosure and reporting: Implement a process for preparing lease-related disclosures and reporting required under the new accounting standards. Ensure that the financial statements accurately reflect lease transactions and balances.
  7. Staff training and communication: Provide training and resources to accounting staff to ensure they understand the new lease accounting standards and can apply them accurately. Establish clear lines of communication to address questions and concerns related to lease accounting.
  8. Segregation of duties: Implement segregation of duties to minimize the risk of errors or fraud in lease accounting. For example, separate responsibilities for lease identification, measurement, and journal entry recording among different individuals.
  9. Periodic review and audit: Perform regular internal reviews or audits of lease accounting to ensure compliance with the new standards and identify areas for improvement. Address any identified issues or discrepancies promptly.
  10. Continuous improvement: Monitor changes in lease accounting standards, guidance, and best practices to ensure your company’s processes and controls remain current and effective. Continuously refine and improve lease accounting processes and controls based on feedback, experience, and industry developments.

Try iLeasePro for free right now; https://www.ileasepro.com/signup/free/

You can take a video tour of iLeasePro or schedule some time on our online demo calendar to see how iLeasePro can help you and your firm comply to the ASC 842 Standard.

Unlocking Cost Savings with Cloud-Based Lease Management Solutions: A Smart Investment

iLeasePro Cost Savings

The amount of savings in expenses when using a cloud-based lease management solution can vary significantly depending on factors such as the size of the property portfolio, the complexity of lease agreements, the efficiency of the existing system, and the features of the chosen cloud solution.

Organizations can generally expect to save on the following costs:

  1. Hardware and infrastructure: By eliminating the need for on-premises servers and hardware, organizations can save on initial investments, maintenance, and upgrade costs.
  2. Software licenses and updates: Cloud-based solutions typically offer subscription-based pricing models, which can be more cost-effective than purchasing and maintaining multiple software licenses. Additionally, updates are often included in the subscription fee, ensuring that you always have access to the latest features and improvements.
  3. IT personnel: A cloud solution reduces the need for in-house IT support, potentially resulting in lower staffing costs. The cloud provider handles infrastructure maintenance, security, and updates, allowing your IT personnel to focus on other strategic initiatives.
  4. Reduced energy consumption: By shifting to a cloud-based solution, organizations can decrease their energy usage, which can lead to cost savings in terms of electricity and cooling.
  5. Improved efficiency: Automation and streamlined processes can save time and labor costs, reducing the overall operational expenses of managing leases.
  6. Minimized downtime: Cloud solutions are designed to be highly available and redundant, reducing the risk of downtime, which can be costly in terms of lost productivity and potential revenue loss.

Some studies have shown that organizations can save up to 20-40% on IT-related expenses by adopting cloud-based solutions, although individual savings will vary based on the factors mentioned earlier. To get a more accurate estimate of potential savings, it is recommended to conduct a cost-benefit analysis, taking into account the specific needs and circumstances of your organization.

Try iLeasePro for free right now; https://www.ileasepro.com/signup/free/

You can take a video tour of iLeasePro or schedule some time on our online demo calendar to see how iLeasePro can help you and your firm comply to the ASC 842 Standard.

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Maximizing Property Management Efficiency: The Importance of a Centralized Lease Data Repository

iLeasePro Central Repository Document Management

A centralized lease data repository is critical for a property manager for several reasons:

  1. Efficiency: A centralized system consolidates all lease information in one location, making it easier for property managers to access and manage data. This saves time and effort, as they no longer need to search through multiple sources or physical files.
  2. Accuracy: Centralizing lease data helps maintain accuracy and consistency by ensuring all information is up-to-date and free of discrepancies. It reduces the risk of errors, miscommunications, or outdated information, which can lead to legal or financial issues.
  3. Analysis and reporting: A centralized repository allows property managers to quickly and easily generate reports, analyze trends, and track key performance indicators. This can help them make informed decisions, identify areas for improvement, and optimize property performance.
  4. Collaboration: A centralized system enables better collaboration among property management teams, as well as with external stakeholders like property owners, tenants, and service providers. It allows for real-time sharing of information and streamlined communication, promoting a more cohesive work environment.
  5. Compliance and risk management: A centralized lease data repository makes it easier to track compliance with local, state, and federal regulations. It also helps property managers identify and address potential risks, ensuring they meet their legal and contractual obligations.
  6. Document management and storage: Centralizing lease data helps property managers manage and store lease documents, such as contracts, amendments, and addendums, more effectively. This can reduce the risk of losing or misplacing critical documents and ensure they are securely stored and backed up.
  7. Scalability: As a property management company grows and acquires more properties, a centralized lease data repository can easily accommodate this growth, providing a scalable solution that remains efficient and effective.
  8. Cost savings: Implementing a centralized lease data repository can lead to cost savings by reducing the need for manual data entry, duplication of efforts, and the use of multiple software systems. It can also reduce the risk of costly errors and legal disputes.

In summary, a centralized lease data repository is critical for a property manager as it promotes efficiency, accuracy, collaboration, and scalability while helping manage compliance, risk, and cost.

Try iLeasePro for free right now; https://www.ileasepro.com/signup/free/

You can take a video tour of iLeasePro or schedule some time on our online demo calendar to see how iLeasePro can help you and your firm comply to the ASC 842 Standard.

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Unlocking Revenue Growth: How CPA Firms Can Boost MRR with ASC 842 Lease Accounting Solutions

iLeasePro CPA Benefits

CPA firms can increase their Monthly Recurring Revenue (MRR) by providing ASC 842 Lease Accounting solutions for private company clients. By offering expert guidance and services related to the implementation and ongoing management of ASC 842, CPA firms can create new revenue streams and foster long-term client relationships. Here are some strategies for CPA firms to leverage ASC 842 Lease Accounting solutions to boost MRR:

  1. Develop expertise in ASC 842: Ensure that your team has a deep understanding of ASC 842 requirements, including lease classification, recognition, measurement, and disclosures. By becoming experts in this area, your firm will be well-equipped to attract clients who require assistance with the new standard.
  2. Offer implementation and transition services: Many businesses will need help transitioning to ASC 842. Offer services such as lease data abstraction, lease classification, and financial statement adjustments to help clients smoothly adopt the new standard.
  3. Provide ongoing lease management support: Offer continuous support with lease management under ASC 842, including lease modifications, reassessments, and financial statement disclosures. This ongoing support can build long-term relationships with clients and generate recurring revenue.
  4. Educate clients about ASC 842: Organize seminars, webinars, or written materials to help clients understand the implications of ASC 842 and the benefits of using lease accounting solutions. By demonstrating your expertise in this area, you can position your firm as a valuable resource for clients navigating the new standard.
  5. Leverage technology: Utilize advanced lease accounting software to automate and streamline lease management processes. This will enable you to serve your clients more efficiently, manage a larger client base, and increase MRR.
  6. Bundle ASC 842 services with other offerings: Package ASC 842 lease accounting services with other financial services, such as tax planning, financial statement preparation, and advisory services. This bundled approach can make your services more attractive to potential clients and increase the likelihood of long-term, recurring engagements.
  7. Target industries with high leasing activity: Focus on industries that rely heavily on leasing, such as retail, manufacturing, logistics, and healthcare. By tailoring your ASC 842 lease accounting services to the specific needs of these industries, you can differentiate your firm and attract clients who require specialized expertise.
  8. Seek strategic partnerships: Collaborate with commercial real estate firms, property management companies, and other organizations that have a strong presence in the leasing industry. These partnerships can help expand your client base and generate more MRR by offering ASC 842 lease accounting services to their clients.

By offering ASC 842 Lease Accounting solutions and implementing these strategies, CPA firms in the United States can increase MRR, attract new clients, and strengthen existing client relationships.

Try iLeasePro for free right now; https://www.ileasepro.com/signup/free/

You can take a video tour of iLeasePro or schedule some time on our online demo calendar to see how iLeasePro can help you and your firm comply to the ASC 842 Standard.

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The Future of Property Management: Embracing Lease Management Solutions for Client Success

iLeasePro Property Management

The property management industry is continuously evolving, driven by advancements in technology and the ever-changing needs of property owners and tenants. One significant development in recent years is the increasing adoption of lease management solutions. These solutions enable property managers to streamline their operations, offer enhanced services to their clients, and ultimately drive greater success for their property portfolios. This article explores how property managers can embrace lease management solutions to create a more efficient and client-centric approach to property management.

  1. Understanding Lease Management Solutions Lease management solutions comprise software and services designed to automate, centralize, and streamline various aspects of lease administration, such as tracking lease terms, critical dates, rent collection, tenant relations, and property maintenance. These solutions help property managers to minimize errors, save time, and provide a better experience for their clients.
  2. Benefits of Lease Management Solutions
  • Improved efficiency: Automation of manual tasks allows property managers to allocate their resources more effectively, leading to increased productivity and reduced operating costs.
  • Enhanced client service: Centralized lease data enables property managers to provide clients with real-time insights, better communication, and faster issue resolution.
  • Accurate and up-to-date information: Lease management software ensures that all lease data is accurate, organized, and easily accessible, reducing the risk of errors and discrepancies.
  • Data-driven decision-making: Comprehensive reporting and analytics features enable property managers to make informed decisions and optimize property performance.
  1. Key Features of Lease Management Solutions
  • Lease tracking and administration: Automatically track lease terms, critical dates, rent increases, and expirations, simplifying lease management and reducing the risk of missed deadlines.
  • Financial management: Manage rent collection, security deposits, and reconciliations, providing clients with regular financial reports and insights.
  • Tenant relations: Streamline communication and issue resolution with tenants, promoting tenant retention and satisfaction.
  • Maintenance and repairs: Coordinate and oversee property maintenance and repairs, ensuring timely completion and minimizing downtime.
  • Compliance: Stay informed about legal and regulatory requirements, ensuring that the property and its operations remain compliant.
  1. Choosing the Right Lease Management Solution To select the best lease management solution for their needs, property managers should consider factors such as:
  • The size and complexity of their property portfolio
  • The specific needs and requirements of their clients
  • The level of customization and scalability offered by the solution
  • The integration capabilities with existing software and systems
  • The cost of implementation, training, and ongoing maintenance

Conclusion: Embracing lease management solutions is essential for property managers looking to stay competitive in the rapidly evolving property management industry. By adopting these advanced tools, property managers can optimize their operations, provide enhanced services to their clients, and drive greater success for their property portfolios. The future of property management lies in leveraging technology to create more efficient, client-centric, and data-driven processes that foster long-term success.

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GASB 96 – Subscription-Based Information Technology Arrangements (SBITAs)

GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs), was issued in May 2020. The statement establishes guidelines for state and local governments for accounting and financial reporting of subscription-based information technology arrangements (SBITAs), which are essentially cloud computing and other IT service arrangements.

GASB 96 is effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Early application of the statement is encouraged.

GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs), provides guidance for state and local governments on accounting and financial reporting for subscription-based information technology arrangements. This statement was issued in May 2020 and addresses the accounting treatment for cloud computing and other IT service arrangements in the public sector.

The main specifics of GASB Statement No. 96 include:

  1. Definition: GASB 96 defines a Subscription-Based Information Technology Arrangement (SBITA) as a contract that conveys control of the right to use a vendor’s IT software, alone or in combination with tangible capital assets (such as hardware), as specified in the contract, for a period of time in an exchange or exchange-like transaction.
  2. Capitalization: GASB 96 requires governments to capitalize subscription-based IT arrangements as right-to-use subscription assets, which are intangible assets, and recognize a corresponding subscription liability. This treatment is similar to the approach used for leases under GASB Statement No. 87.
  3. Measurement: The initial measurement of the subscription asset should be based on the total subscription liability, which includes the present value of future payments for the SBITA, plus any one-time payments made at the beginning of the contract, minus any incentives received from the vendor.
  4. Amortization: The subscription asset should be amortized over the shorter of the SBITA’s useful life or the contract term, including any options to extend if it is reasonably certain those options will be exercised.
  5. Recognition of outflows: Outflows of resources (e.g., implementation costs) incurred by the government in a subscription-based IT arrangement should be recognized as expenses, unless they meet the criteria for capitalization.
  6. Disclosures: Governments should provide note disclosures in their financial statements related to the SBITA, including a general description of the arrangement, the total amount of the subscription asset, and the total amount of outflows of resources recognized for the arrangement.

GASB Statement No. 96 is effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Early application is encouraged.

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