Quick Tips to Prepare for the New Lease Standard – Deadline Approaching!

The deadline for the new revenue recognition and lease accounting standards set by the Financial Accounting Standards Board (FASB) is coming up soon.  Are you ready?

Deadline:  December 15, 2018

Why is this important?

  1. Organizations will need increased oversight of their current and future leases to make sure the liabilities they have/or are entering make the most sense for their organization’s financial picture that will be shown on the balance sheet.
  2. Organizations will need to have a much higher level of visibility than they’ve had in the past which will require new processes that will need to be maintained.

A few quick tips:

  1. Don’t delay – If you haven’t started to gather the information you’ll need; you are already behind.
  2. Engage key stakeholders – Procurement, Accounts Payable, Real Estate, Legal, Finance…
  3. Collect the data – Get a handle of your lease portfolio – Reach out to vendors
  4. Develop and implement processes and controls
  5. Look at procuring a spend management system
  6. Let the experts help you get visibility

With the new leasing standards, this will ultimately force organizations to have a deeper visibility to their mailing spends.  When we are managing this level of detail for our clients, we are averaging 60% cost savings.  Our key is maintaining the data. You can do this on your own with the right process to ensure that you are making the best financial decisions for the future.

Need more information?  Link to recent article.

Contact us for help from the experts.

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