What's Your ASC 842 Plan
One Tool to Connect Your Entire Organization
ASC 842 is the current lease accounting standard, and audits are happening now. It’s as good a time as any to evaluate your ASC 842 compliance processes and see what’s working and what you’d like to adjust for efficiency in the long run.
Whether you are a public company who’s been through a few cycles of ASC 842 reporting or a private company just getting started, below are some questions that may be helpful in evaluating your ASC 842 solution. The software tool is key, but we’re finding that ease of ASC 842 integration into your lease management workflow and access to customer support is critical as well.
-
What software system did you put in place to support ASC 842 alignment?
-
How smoothly does the solution fit your lease management & accounting workflow?
-
How will your lease data get updated?
-
How will you handle lease modifications and re-measurements throughout the year?
-
New leases, new schedule start date rules. If you add a new lease, have you selected whether to use lease commencement date, possession date, or another date as the
start date?
-
Did you discover data from a previous reporting year that requires update?
-
Did you do it all on your own and are you’re nervous about what you might have
missed?
-
Are you feeling prepared for an audit?
There are still a lot of unknowns for everyone as we go through this first round of the new normal. Let’s talk about how the lease management and accounting software system you choose going forward can make adhering to these new rules as easy as possible.
One Solution Is Better Than Five
At Property Works, we specialize in integrating lease management and ASC 842 compliance across our clients’ various departments and roles. We’re seeing that using different software tools for different aspects of lease management and compliance is generating discrepancies in reporting, so we’ve focused on developing a single integrated software tool so all data is housed in a central location and accessible to all team members. With ASC 842, all the rules are pre-set into the software with approval hierarchies and controls, so you have a tool that allows multiple departments to work in the software while maintaining oversight to prevent someone on your team from making an unvetted decision that could have major repercussions. Further, Property Works’ software facilitates updates throughout each year, so you can take actions such as re-measurements as the need arises, which will save you time come audit season. Once the rules appropriate to your ASC 842 needs are set up in the software and your data is scrubbed, calculating your ASC 842 schedules is as simple as clicking a button.
How It Works
When you partner with Property Works to streamline your lease administration and reporting needs, we begin by reviewing all of your lease documentation, creating comprehensive lease abstracts, and setting up your modules for daily work. Your lease data and documentation trails will be readily accessible to you. When you set up a new schedule for ASC 842, the module pulls the relevant lease information (subject to review and confirmation by your internal team), applies rules as built in to the software, and automatically completes calculations . You can easily incorporate payment adjustments and impairments into your schedules, and we also offer journal entry reporting that can be customized to your specifications. your accrual accounting system. We’ve found a balance of automation with human checks along the way provides the most accurate ASC 842 services to our clients. And whenever you have questions, the Property Works professionals are available to weigh in with guidance earned through decades of navigating all aspects of lease management alongside our clients.
Ready to see Property Works software in action? Schedule your free demo now
