For restaurant and retail chains juggling leased locations, the specter of ASC-842 looms large. This complex accounting standard, demanding comprehensive lease recordkeeping, often triggers groans and late-night spreadsheet sprints. But what if the real culprit behind your ASC-842 woes isn't the standard itself, but the disconnect between your lease administration and accounting departments?
Living in Silos: A Recipe for Headaches
Imagine two islands – Lease Administration and Accounting – separated by a stormy sea of data gaps and manual work. On Administration Island, lease agreements pile up, amendments get lost in email chains, and expiration dates lurk in forgotten spreadsheets. Meanwhile, Accounting Island grapples with inaccurate lease data, frantic re-measurements for every schedule change, and the constant threat of missed deadlines.
This disjointed approach breeds chaos:
- Re-measurement Mayhem: Every lease amendment or payment adjustment triggers a scramble on Accounting Island, as teams manually recalculate ASC-842 schedules. This eats up valuable time, resources, and patience.
- Spreadsheet Hell: Lease data gets trapped in siloed spreadsheets, prone to errors and inconsistencies. Imagine reconciling rent payments across dozens of spreadsheets – enough to send even the most seasoned accountant running for the hills.
- Missed Deadlines and Compliance Nightmares: Inaccurate data and manual processes increase the risk of missed deadlines and non-compliance penalties. Picture the sinking feeling of realizing lease disclosures are wrong on the eve of an audit.
Bridging the Gap: A Beacon of Hope
But fear not, weary lease warriors! There's a hidden treasure buried beneath the stormy sea – integrated lease administration. This magical bridge connects the islands, allowing data to flow freely and tasks to be automated.
With a solution like Property Works, you can:
- Generate compliant ASC-842 audit packets and journal entries automatically, waving goodbye to late nights spent hunched over spreadsheets.
- Centralize lease data in a secure, cloud-based platform, accessible to both Accounting and Administration teams in real-time. No more chasing data through email threads and forgotten folders.
- Automate lease-related tasks and set up proactive alerts, ensuring deadlines are met and critical events never slip through the cracks. Imagine the peace of mind knowing your lease portfolio is always on track.
Beyond Compliance: A World of Operational Efficiency
Integrated lease administration isn't just about checking compliance boxes. It's about unlocking a new level of operational efficiency:
- Boost AP Efficiency: Automated workflows and integrations with your existing AP system streamline lease payments, saving time and reducing errors.
- Gain Valuable Insights: Analyze your lease portfolio, from expiration dates and renewal options to rent burden and potential savings opportunities. Data-driven decisions lead to smarter real estate strategies and higher profitability.
- Empower Your Teams: Free your accounting and administration teams from manual tasks and empower them to focus on strategic initiatives. Happy and productive employees are the backbone of any successful business.
Don't Let Silos Haunt You Anymore
In today's competitive landscape, clinging to outdated, disjointed systems holds you back. While switching to a more integrated solution might seem daunting, remember clinging to an inefficient system will cost you more in the long run. The sunk cost of a previous provider shouldn't outweigh the future benefits of streamlined processes and accurate ASC-842 compliance.
Contact Property Works today and discover how we can help you bridge the gap between lease administration and accounting. Let's navigate the stormy seas of ASC-842 together and reach the sunny shores of compliance and operational excellence.
Remember, the choice is yours – continue battling the silos or chart a new course towards a smoother, more efficient future. The power is in your hands.