ASC 842 Post Implementation: Reflect, Refine, and Reimagine Your Lease Management Strategy
The first year of ASC 842 compliance has served as a valuable learning experience for organizations of all sizes. This period of adaptation has provided the opportunity to identify areas for improvement and refine existing strategies. Whether you're a seasoned public company or a private company embarking on year two, a proactive approach is essential to optimize your lease management strategy and ensure long-term compliance.
Beyond Software: A Holistic View of ASC 842
While implementing a robust software solution forms a crucial foundation for ASC 842 compliance, true success hinges upon effective integration with your existing workflow and access to reliable human support. To gain a comprehensive understanding of your experience, consider the following questions:
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Integration: How effectively does your current solution integrate with your existing lease management and accounting processes?
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Internal Processes: Have you established clear and consistent internal processes for ongoing lease data updates throughout the year?
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Lease Changes: What mechanisms are in place to identify and handle lease modifications and re-measurements?
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Standardized Application: Do you maintain established rules and assumptions for consistently applying the standard, particularly regarding new lease start dates?
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Data Consistency: Did you encounter data inconsistencies requiring updates from previous reporting years, and how were these addressed?
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Audit Readiness: Do you feel confident in your current audit readiness, or are there lingering concerns about potential gaps in your process?
Year Two Optimization:
With the first year of ASC 842 experience under your belt, it's crucial to embrace a culture of continuous improvement to optimize your strategy for long-term success. Here are key areas to consider for year-two optimization:
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Streamlined Data Management: Prioritize centralized data storage in a readily accessible location, facilitating seamless collaboration and data integrity across different departments.
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Leveraging Technology for Efficiency: Implement software that automates calculations based on pre-set rules and established workflows. This not only reduces manual errors but also saves valuable time and resources.
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Maintaining Flexibility: Select a solution that allows for ongoing updates and modifications to lease data throughout the year, ensuring accuracy and preparedness during audits.
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Investing in Expertise: Partner with a team of experienced professionals who possess extensive knowledge in lease management and ASC 842 compliance. Their guidance can prove invaluable in navigating challenges and achieving optimal results.
Property Works: Your ASC 842 Partner:
At Property Works, we go beyond just providing software. We offer a comprehensive solution that seamlessly integrates lease management and ASC 842 compliance, ensuring all departments work together for optimal efficiency.
Here's what sets us apart:
- Integrated Platform: Our software eliminates data discrepancies by housing everything in a central location.
- Pre-set Rules & Controls: Minimize risks with pre-built rules and approval workflows within the software.
- Flexible Updates: Handle lease modifications, re-measurements, and other adjustments throughout the year with ease.
- Expert Support: Our team of professionals provides ongoing guidance and support, drawing upon years of experience.
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. 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.
