How often have you said, “I’ll get to that later” for something you’re not that excited about or you’re not sure how to start? Lease accounting is like that for a lot of people, but hear us out. Those who have already been through the process to get compliant say that getting started early can really pay off. That way you’re not scrambling at fiscal year-end — or worse, struggling to catch up when your auditors come knocking.
As you start planning, one of your initial thoughts may be: Do I really need a lease accounting software solution to get compliant? I don’t have that many leases. My trusty spreadsheets work just fine. My [insert department, whether that’s finance, accounting, procurement] team has a good handle on all our leases and are good at keeping track of everything. I have total confidence in my financial statements and we would pass an audit with flying colors!”
Look, we’ve heard it all. And we get it – implementing a new solution to comply with new standards can be a bit overwhelming. But take it from your public company counterparts – they are still having audit issues, and they’ve been doing this lease accounting thing for a few years now! Can you really afford NOT to implement a solution?
To help put things in perspective, we thought we’d break down the positives of implementing a solution and the negatives of waiting, and let you be the judge.
Now, let’s talk about what can happen if you decide to wait on implementing a solution.
Now, even after all that, you still may be saying to yourself, “I see where you’re coming from, but I really think we have a good system in place with our spreadsheets. We have plenty of staff who know the ins and outs of spreadsheets and we’re confident that our data is accurate.” If that’s the case (and we get it, a lot of companies think the same way!), let me give you a few more things to think about:
We could go on, but hopefully you get the picture. While your spreadsheets may have worked fine for you in the past, they just won’t cut it anymore with ASC 842, GASB 87 or GASB 96. In fact, you should check out these myths and risks of using spreadsheets for your lease accounting.
So, why not make your life (and your audit) easier with a solution that can help turn those negatives into positives and free you from your spreadsheets! Your future self (and your auditors) will be grateful.
In a nutshell, put aside the denial because you can’t ignore the deadlines anymore. It’s here to stay. Now is the time to take control of your compliance journey and start moving towards implementation. You’ll be glad you did.