How to Cut Costs & Improve ROI with Lease Management Software
Lease contracts are complex by default and accurately tracking them, particularly when they number in the hundreds, is an onerous task. Those who manage leases often find it difficult to keep up with the provisions, obligations, critical dates and other important details. Lack of information regarding lease details can prove costly for companies.
Following release of the new lease accounting standards, companies are trying to implement them as quickly as possible. It is now more important to have a thorough understanding of lease details to avoid hefty penalties in case of noncompliance. This is where lease management software and lease accounting software can help to streamline the process, centralize data and simplify reporting.
As a corporate occupier, managing lease portfolios is inevitable, and ensuring they are properly managed is essential. However, a large lease portfolio makes keeping track of all the obligations and deadlines regarding each lease more challenging. Understanding and effectively managing all aspects of a lease is key to ensuring that business is done properly and that financial aspects are monitored.
Failing to get deep insights into lease details can cause unnecessary expenses and lack of compliance when it comes to lease accounting standards. Fortunately, lease management software can not only help businesses avoid such situations but it can also provide the necessary tools to reduce unnecessary costs and maximize the return on lease investments. Here’s how lease management software can help you manage your lease portfolio.
To best manage a lease and all obligations associated with it, having a deep understanding of all details associated with it is key. This includes everything from critical dates, reports, updates, modifications and terminations, among others. Having all this information in a single, centralized system with easy-access increases visibility and productivity when it comes to tracking leases.
This is essential to mitigating risks and staying on top of all important aspects of your leases. Lease management software allows you to access all lease information easily and efficiently, providing you with the assurance that all decisions and actions made regarding a lease are completed in a timely and accurate manner to avoid penalties or additional costs.
The best way to determine how to cut costs, reduce risks and even influence revenue is by looking directly at the lease data. Lease management software, by storing all lease information in a single, centralized location, enables easy access and the possibility of turning the available data into actionable insights.
Being able to calculate tenancy costs, knowing the risk exposure and understanding the real estate optimization opportunities are essential to saving costs and increasing revenue. As such, you can be sure that all decisions made regarding a lease are based on relevant information to ensure they are effective for your business.
Being able to identify and access all lease information that is valuable to your business to make decisions about the future is essential to reducing costs and improving ROI. As such, being able to analyze your leases and the corresponding terms allows you to make the best decision regarding the future of those leases.
Whether it is terminating a lease early, terminating it on time, renewals or even changes to an existing lease, it’s necessary to properly analyze the terms, obligations and special clauses of a lease to determine what the best course of action is regarding that lease. And understanding a lease as much as possible can help in making the best cost-effective decisions for your business.
Whether it’s renegotiating a new lease monthly rent, removing costs for unused services and even challenging costs for services not included in the lease term, with lease management software you are in the position of ensuring that any decision made regarding your lease portfolio will reduce costs and improve the ROI for your business.
Reporting and Compliance
Lease management software is a great tool for your team to use when managing the company’s lease portfolio as it makes reporting and compliance easy and accurate. It allows for everyone responsible to have access to lease information to work together to make cost-effective decisions and strategies.
Furthermore, with the help of lease accounting software, companies can become ASC 842 compliant by having the tool that can automatically generate a report according to FASB reporting standards. Companies can be sure that reports are accurately submitted on time and that no extra money was spent on additional resources needed to report leases through the balance sheet.
Reducing costs and improving ROI are some of the main goals for companies as they support the overall success of the business. Fortunately, when it comes to corporate leases, these goals can be supported with the help of tools, like lease management and lease accounting software, which help keep all lease information in a centralized location, enabling those responsible to access it and make the best lease decisions for the company.