Lease management has been a critical aspect of a company’s growth strategy since implementing new lease accounting standards ASC 842, IFRS 16, and GASB 87. Leases are now subject to increased scrutiny, which requires businesses to invest in optimizing their strategies to demonstrate compliance and foster long-term growth.
As leases are now subject to increasing scrutiny, companies need to expand their property lease management strategy to demonstrate compliance and promote long-term success. In this blog, we’ll analyze how to optimize your leasing strategy. So, let’s go through them now.
1. Put all of your lease data and administration tools in one place
Keeping all of your leases in one place is one of the simplest methods to improve property lease management. Teams may access leasing data anytime, anywhere in a cloud-based, centralized environment, reducing bottlenecks and enhancing efficiency. Key stakeholders don’t have to wait for information to make time-sensitive strategic decisions because reporting and data management are centralized. A unified system also enables a clear audit trail, making ASC 842, IFRS 16, and GASB 87 compliance considerably easier.
2. Set up controls and procedures to verify that financial reporting is accurate
Every stage of the lease life cycle, from lease onboarding, lease operation to ending leases, requires procedures and controls. As a result, standard standards must extend beyond the accounting department to cover all teams involved in lease maintenance and acquisition at any stage. The accounts team must be able to trust the information provided by others. As a result, automating processes and putting in an approvals system will result in more accurate reporting and forecasting.
3. Market data should be taken into consideration
If you want to know how your leasing strategy is performing, pay close attention to the leasing market. You won’t be able to stay on top of your company’s potential for growth or notice places where troubles may occur if you’re not aware of market trends or variations in property value over time.
4. Create Strategies With an Eye Toward Growth
Many businesses make the mistake of viewing lease management as a simple administrative task. It is, nevertheless, preferable to approach leases with a growing perspective. Spaces vary with time, and a strategic strategy should account for all potential changes in the property’s value.
5. Invest in Dynamics 365 asset leasing to manage your property leases
Identifying software that is compatible with your existing systems, such as d365 supply chain management. It should also allow you to set up processes and controls, as well as generate real-time financial reports and trustworthy financial statements.
So, as you now have the ways to optimize the lease management strategy, you can utilize the financial management capabilities in Microsoft Dynamics 365 for finance and operations. To help you with implementing it, you have a dynamics 365 finance consultant from DFSM. All you need to do is to reach out and let us help you with the procedures or controls you want to implement in your organization as a lease management solution.