- How many operating leases do you have?
- If you have supply agreements, do they contain embedded leases?
- Is your data consistently gathered and subject to SOX controls?
- Do you have a centralized repository and processes for entering into a lease, accounting for the lease and retaining the documents?
- Is there an opportunity for ROI?
- Would it be beneficial to adopt the Standard and ASC 606 at the same time?
Similar to the new Revenue Recognition Standard, the new Lease Standard will impact functional areas beyond accounting and financial reporting:
- Treasury: Debt covenants
- Sourcing: Lease vs. buy analysis
- Legal: New terms or conditions for leasing arrangements
- Sales & Marketing: Negotiations, close processes
- Real Estate / Fleet / Asset Management: Complex sublease or sale-leaseback transactions
- IT: Modification or selection of systems; data & integrations
- HR: Compensation metrics, organizational design
- Tax: Leases category differences; impacts for deferred taxes, sales and property taxes
Technology will likely play an important role in your company’s lease implementation efforts. Identifying where and how your lease related data is stored is a necessary first step. There are many tools in the market to assist in data abstraction, lease management and accounting. We have experience in helping companies select the most appropriate software for their needs, using an approach which begins with identifying the business requirements based on the company’s specific lease portfolio. We also have experience in implementing these packages and providing a full-service solution for your company.
Through our partnerships, clients gain access to several of the most respected and established providers of leasing software and a talented pool of consultants able to assist with the software implementation. Contact us to schedule a demo.
This suite of products includes real estate lease administration as well as accounting for both real estate and equipment leases.
"We are pleased to align our proven lease accounting solutions with RGP. The combination of our Lease Manager product suite and the trusted advisors of RGP offer clients a proven combination for tackling compliance with the new lease accounting standards."
— Andy Thomas, President - CoStar Real Estate Manager
This suite of products is ideal for companies needing a solution primarily for their equipment leases, who either already have a real estate administration solution, or very few real estate leases. This software package can serve as a subledger for both real estate and equipment leases, generating all required accounting entries, as well as an equipment lease administration system.