For a Chief Financial Officer (CFO), understanding the intricacies of lease contracts is paramount. Not only do these contracts dictate the terms of asset utilization, but they can also significantly influence a company's financial standing and tax exposure. In the context of the ASC 842 lease accounting standard, the importance of contract negotiation becomes even... Continue Reading →
Lease Accounting Changes: The Impact to the Hospitality Industry
Lease accounting, particularly as it relates to lessee accounting, has been a controversial topic for a number of years. The fact that a lessee under current generally accepted accounting principles (“GAAP”) can execute a contract to make legally binding payments over a period of time, structure the contract so that it is classified as an... Continue Reading →
10 Ways to Optimize Your Lease Portfolio As A Lessee
As a lessee, optimizing your lease portfolio involves strategically managing your leases to maximize efficiency, reduce costs, and minimize risks. Here are some steps you can take to optimize your lease portfolio: 1. Consolidate and centralize lease data: Start by gathering all your lease agreements and centralizing them in a lease management system or database.... Continue Reading →
Mastering Lease Management: Essential Tips for Lessees
Lease management is a fundamental skill for lessees, allowing businesses to access assets and properties without the burden of ownership. Whether you're a small business owner or a corporate entity, understanding the intricacies of lease agreements is crucial for efficient operations and financial stability. In this blog, we'll explore some essential tips for lessees to... Continue Reading →
Lease vs. Buy: Making the Right Decision for Your Business
When it comes to acquiring assets for your business, such as office space, equipment, or vehicles, one of the fundamental decisions you'll face is whether to lease or buy. The correct choice depends on various factors, including your business's financial situation, long-term plans, and specific needs. Here are some key factors to consider in the... Continue Reading →
Critical Date Notifications: Vital for Lease Compliance & Risk Management
In lease management, critical date notification refers to the process that alerts the involved parties about important dates and deadlines related to a lease agreement. These notifications help ensure that both the landlord and the tenant are aware of upcoming crucial dates, such as lease expiration, rent increases, option exercise periods, renewal deadlines, or any... Continue Reading →
Unlocking Cost Savings with Cloud-Based Lease Management Solutions: A Smart Investment
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... Continue Reading →
Maximizing Property Management Efficiency: The Importance of a Centralized Lease Data Repository
A centralized lease data repository is critical for a property manager for several reasons: 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. Accuracy:... Continue Reading →
The Future of Property Management: Embracing Lease Management Solutions for Client Success
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... Continue Reading →
Unlocking the Benefits of Cloud Lease Accounting & Lease Management Solutions for Property Managers
There are several benefits of a cloud lease accounting and lease management solution for property managers, including: Improved accuracy: Cloud lease accounting and lease management solutions automate the lease accounting process, reducing the potential for human error. This results in more accurate financial reporting and better decision-making. Centralized data: Cloud solutions provide a centralized location... Continue Reading →
What Are The Benefits Of A Centralized Contract Management Solution?
Centralized contract management solutions in the cloud offer several benefits to organizations, including: Accessibility: With a cloud-based solution, contract information is accessible from anywhere and at any time, as long as there is an internet connection. This enables organizations to manage contracts remotely and provides flexibility to access important information when needed. Efficiency: A centralized... Continue Reading →
Lease Critical Dates – Missing a critical date can lead to serious issues
Missing lease renewals due to dates can have several consequences for companies, and the trends among such companies may vary depending on the specific circumstances. Here are a few potential outcomes: Increased costs: Companies that miss lease renewal deadlines might end up paying higher rent if their landlords decide to increase rates for new lease... Continue Reading →
Why You Should Not Use Spreadsheets To Manage Your Leases For The ASC 842?
While spreadsheets have been indispensable tools in various aspects of business management, relying solely on them for compliance with the ASC 842 lease accounting standard is a risky proposition. The complexity and nuances of lease accounting demand a more robust and specialized solution, and here's why spreadsheets may not be the ideal choice: 1.... Continue Reading →
Effective Use of Technology For Lease Management
Lessees often underestimate the transformative power of technology when it comes to effectively managing their lease portfolios. Within the complex landscape of lease agreements, there are frequently option features and triggering events buried in the fine print that demand vigilant monitoring. Relying on outdated methods such as Excel spreadsheets or paper files stashes in cabinets... Continue Reading →
October 22, 2014 Joint FASB and IASB Meeting
The FASB and the IASB (“the Boards) held a joint meeting on October 22, 2014 to continue deliberating the proposals in the May 2013 Exposure Draft, Leases. The discussion centered exclusively on the definition of a lease and, for the most part, reiterated the tentative conclusions that had been previously discussed. The Boards indicated that a... Continue Reading →
Implications of Lease Accounting Changes to the Banking Industry
We've written this free whitepaper for bank executives with real-world responsibility. We've all seen endless hypothetical blather about the proposed lease accounting changes - but most of it is generic...for someone with a lease. So we created a fully researched and documented deep dive into the specific implications to banks. It covers topics that aren't... Continue Reading →
Whitepaper: Implications of Lease Accounting Changes to the Banking Industry
We've written this free whitepaper for bank executives with real-world responsibility. We've all seen endless hypothetical blather about the proposed lease accounting changes - but most of it is generic...for someone with a lease. So we created a fully researched and documented deep dive into the specific implications to banks. It covers topics that aren't... Continue Reading →
Aligning Numbers When Comparing Multiple Leases During Lease Negotiation
In a previous Blog posting, we introduced our readers to the Lease Analysis component of iLeasePro, our comprehensive lease management technology solution specifically designed for lessees. We indicated that Lease Analysis is an invaluable tool that supports lease negotiations and lease reassessment by providing the user with the technology for evaluating all the financial terms... Continue Reading →
Lease Expense Classification – The Impact is Broader than You May Think
The revised Exposure Draft on proposed Lease Accounting Changes issued in May 2013 (“the Revised ED”) contains provisions on expense classification that has broader implications than may be evident initially. For Type B leases, principally leases of property (real estate), the proposed expense is classified as lease expense and the expense recognition pattern is straight-line,... Continue Reading →
The New Lease Accounting Standard & Debt to Equity Ratios
In the past, we have discussed various aspects of the new lease accounting standard that is currently being jointly proposed by both the FASB and the IASB. The new standard will require that all leases, except short term leases, be recognized as liabilities on the lessee’s balance sheet. This will result in a dramatic change... Continue Reading →