Organizations can unlock opportunities in 2022 by using lease accounting as a catalyst to optimize leasing
RESTON, Va., March 31, 2022 /PRNewswire/ — LeaseAccelerator, the leader in the Enterprise Lease Accounting and Lease Lifecycle Management software market, announced today the results of the 2022 Global Lease Accounting Survey conducted with its partner, Ernst & Young LLP (EY). With the ASC 842 and GASB 87 effective date delays over, organizations worldwide must now create, implement, and sustain lease accounting compliance plans that harness processes, technology, and people. The 2022 survey showed there is no ‘one size fits all’ perspective when balancing these key elements. However, there are opportunities for organizations to optimize lease accounting to increase business value and drive return on investment (ROI).
The 2022 survey findings indicate challenges such as lease accounting integration and governance continuing to lag other finance functions, and new challenges for US public companies stemming from team lease accounting fatigue and employee turnover. However, these challenges become an opportunity, as many US private companies are actively applying key lessons from US public companies to optimize their current leasing processes. Key findings include:
- 20% of US private company respondents are starting implementation, and 32% have already implemented by adopting early, up 8x from last year.
- 40% of respondents say that they return less than 70% of their leases on time.
- Although 37% of respondents have more than 250 leases, most aren’t centralizing decision-making and automating processes.
- Nearly half (48%) of respondents said their lease accounting is not fully integrated with ERP systems, creating potential missed opportunities for business optimization.
“The global economic environment has continued to be challenging. To manage the risk and uncertainty that goes with the growing challenges, taking control of lease portfolios and using automation to “do more with less” have never been more essential,” said Todd Fredrick, CEO at LeaseAccelerator.
Survey findings will be previewed on our March 31st webinar, Optimize Lease Accounting. To register, please visit: https://explore.leaseaccelerator.com/resources/webinars/optimize-lease-accounting-key-actions-from-survey-results/. Download the full report here.
LeaseAccelerator provides enterprise lease lifecycle automation software that ensures long-term compliance and improves operational efficiency. Thousands of users rely on our secure Software-as-a-Service (SaaS) platform to manage and automate 700,000 real estate and equipment leases valued at $200 billion across 5 million assets in 172 countries that generated 11 billion journal entries.