Choosing the right lease accounting software is a critical decision for organizations looking to streamline their lease management processes and ensure compliance with lease accounting standards. With numerous software vendors on the market offering various solutions, it is important to ask the right questions to evaluate their offerings and find the best fit for your organization’s needs. One essential question to consider is whether the software supports the specific lease accounting standards applicable to your organization. This question goes beyond being a mere requirement; it serves as the “table stakes” for any lease accounting software vendor, as compliance with accounting standards is non-negotiable. By ensuring the software supports your organization’s lease accounting standards, you can guarantee accurate financial reporting, avoid potential compliance issues, and make informed business decisions.
To delve deeper into the evaluation process, here are five key questions you should ask your lease accounting software vendor:
1. How can implementation costs and modifications to leases be effectively handled?
Implementation costs from some vendors can be higher than the cost of the software and many require that you use their services to make changes to leases. EZLease offers a cost-effective solution for lease management, with optional implementation and self-service lease modifications. Our user-friendly software simplifies the process, ensuring thorough validation and maintaining an audit trail. Setting up is a breeze, taking just a few minutes, and loading leases is fast and straightforward. With our software, clients can achieve compliance and streamline lease management activities efficiently.
Our free trial has been a resounding success, with clients achieving compliance and closing their books using our solution. This demonstrates the effectiveness and efficiency of our software.
We understand that different clients have different needs, so we provide flexible options. You can choose our self-service feature for independent lease management or opt for expedited setup to get started quickly. If you need guidance and support, our experts are here to help. Our software also enables seamless collaboration for outsourcing lease management. We offer pricing options accommodating various budgets and requirements.
2. What features does the software offer to simplify lease accounting processes and improve efficiency?
Lease accounting can be a complex and time-consuming process, especially when managing a large lease portfolio. To maximize efficiency and accuracy, it is essential to choose a software solution that offers features designed to streamline lease accounting processes.
Ask your vendor about the specific features their software provides, such as:
- Automated calculation of lease liability and right-of-use asset values
- Automated lease classification to determine whether a lease is an operating or finance lease
- Amortization schedules and depreciation calculations
- Automated journal entries ready to be exported into your ERP
- Support for various lease modification scenarios
- Out-of-the-box disclosure and roll-forward reports
- Export to existing financial systems and general ledgers
By selecting a software solution with robust features, you can reduce the time and effort required to manage your lease portfolio while improving the accuracy of your financial reporting.
3. How does the software handle data security and privacy?
Data security and privacy are concerns for any organization, especially when dealing with sensitive financial information like lease data. When evaluating lease accounting software solutions, be sure to ask about their approach to data security and privacy.
Key questions to consider include:
- What security measures are in place to protect sensitive data?
- Is the software compliant with relevant data protection regulations, such as GDPR or CCPA?
- Can access to the software be restricted based on user roles and permissions?
- How is data backed up and protected against potential loss or corruption?
By understanding a provider’s approach to data security and privacy, you can ensure that your organization’s sensitive financial information remains protected.
4. What kind of client support and training does the vendor offer?
Implementing a new lease accounting software solution can be a complex process, and ongoing support and training are critical to ensuring success. When evaluating vendors, ask about the level of client support and training they provide.
Key factors to consider include:
- Availability of live client support via phone, email, or chat
- Access to online resources, such as help articles, tutorials, and videos
- Availability of personalized training sessions or webinars
- Ongoing software updates and enhancements
By choosing a vendor that offers comprehensive support and training, you can ensure a smooth implementation process and continued success with the software.
5. What is the total cost of ownership for the software?
Finally, it is essential to consider the total cost of ownership (TCO) for the lease accounting software. TCO includes not only the initial purchase price but also ongoing costs, such as maintenance, support, and upgrades.
When discussing pricing with vendors, be sure to ask about:
- Licensing or subscription fees
- Implementation and setup costs
- Ongoing maintenance and support fees
- Costs for additional modules or features
By understanding the TCO for each software solution, you can make an informed decision that aligns with your organization’s budget and long-term financial goals.
Start with a free trial
The best way to begin evaluating lease accounting software is to get a free trial of a software you are interested in. Alternatively, you may look for a free version of the software that can introduce you to its features and functionality.