Lease Document Inventory & Discovery
Comprehensive lease document inventory is critical for implementing Topic 842. Typically Clients will separate lease management and accounting responsibilities. This has historically been adequate, but under the new standards is ineffective. We work with employees from both disciplines to ensure comprehensive lease data management including testing for completeness. Compiling data from different ERP platforms, spreadsheets and PDFs can be very time-consuming.
Lease document management is an imperative, necessary initial step for any implementation project. It is critical to have an accurate comprehensive, real-time inventory of all leases. This includes all real estate, equipment, and embedded leases. Document management can be the most arduous chore of the implementation project. Collecting all necessary information requires data sources from multiple departments: legal, IT, supply chain, procurement, finance, lease and facilities administration, finance and accounting.
Lease Processing requires careful planning prior to the lease accounting software data entry. Simple questions can become complex when considering how to account for the new 842 attributes.
Practical expedients under Topic 842 to consider:
- Does the arrangement contain a lease?
- Lease classification assessment as to “finance” vs. “operating”.
- Recognition of initial direct costs.
- Application of hindsight events.
- Recognition of leases of 12 months or less.
The AccountLease™ team has used various lease accounting software programs for lease processing. If you’ve already invested in these programs, we can help you complete the implementation to ensure all real estate, equipment and embedded lease components are accurately accounted.
AccountLease™ uses Artificial Intelligence
The benefits of using artificial intelligence in lease accounting:
- Leverages Machine Learning and Natural Language Processing
- Increase in accuracy over human abstraction
- 30%-90% time savings
- Self-training by non-tech professionals to extract custom terms
Financial Statement Reporting
Utilizing lease accounting software, AccountLease™ is able to generate the applicable entries at date of implementation and each subsequent reporting period thereafter. In addition, the AccountLease™ team is well versed in preparing the necessary GAAP footnote disclosures and data required under Topic 842. This turnkey solution provides substantial time savings and leverages the years of experience of the AccountLease™ team.