What COVID-19 Has Taught Us About Lease Administration Software and Why We Need It
Accessible business solutions
As many organisations had to move their office to home, the demand for more agile technology increased rapidly, and cloud-based solutions became a hot topic. Experts say that typically within organisations, the departments that generate revenue are also the first to get funding for new technology. But what COVID-19 has taught us, -is that the importance of accessible data is not only restricted to specific departments but the whole organisation.
Accessible business solutions are not only beneficial for the sake of data but could also lead to lower costs with less maintenance. We have listed 8 benefits of Cloud Computing for you to read in this linked article.
The importance of accurate lease data and a defined lease process
There is no doubt that the last few months have been a challenging time for many organisations, if not the most challenging time ever. Many businesses have seen a significant decrease in their revenue, and landlords have tried to find ways to ease rent charges for their tenants. Leases have been renegotiated, and there’s been a complexity around how to best handle temporary changes in rent charges. These scenarios can be challenging even during successful times, especially if managing a broad lease portfolio. Having comprehensive, automated lease management software will not only ease this process for organisations but also help with saving money where it’s possible. For tenants, this means that you will gain visibility over what you should actually be paying your landlords and a way to make sure you’re not paying too much.
Temporary changes in lease charges can confuse and lead to gaps in reporting that could have a negative impact on your financials unless reported on correctly. Progenesis’ solution will help you manage these temporalities and also let you know when you have to take action on any critical event. Read more about how to handle rent changes due to COVID-19.
Keeping up with compliance
In addition to keeping track of any potential lease changes, Lessees also have to comply with national lease accounting standards. If your leases are subject to IFRS 16 (AASB 16) and the profile is set up accordingly within Progen, generally, any changes will flow through automatically. As for how the changes may or may not affect your lease liability, we advise you to speak with your auditor. Regardless, whether COVID-19 has had a direct impact on your lease figures or not, if you haven’t yet complied with the new lease accounting standard -keeping the numbers updated will help with a smooth transition for when you do.
As always, Progenesis is here to assist you with any questions you may have regarding your lease process. And if you haven’t yet transitioned to IFRS 16 compliance -don’t hesitate to reach out to us today.