LeaseAccelerator is the industry’s first software application developed specifically for Enterprise Lease Accounting. Fortune 500 companies lease much of the real estate and equipment they use to run their business. Real estate leases might be for factories, warehouses, call centers, research labs, retail stores or corporate offices. Equipment might include office equipment (furniture, photocopiers), industrial equipment (forklifts, machinery), transportation equipment (trucks, planes) or IT equipment (laptops, servers).
We believe that leasing is one of the most poorly managed financial process in Fortune 500 companies. The average Fortune 500 company has between $100M and $1B of leases, which represent between 1000 and 10,000 assets. No other process with such high dollar values has so little governance, process and control. While corporate real estate leases have been increasingly centralized in recent years, few companies have assigned ownership to their IT, fleet and equipment leases. At most companies it would take weeks, if not months, to simply get a listing of all the active leases around the world.
But this is all about to change. Recently, a new set of accounting standards have been introduced by the US (FASB) and International (IFRS) accounting boards specifically for leasing. With these new standards, leases move from an often overlooked footnote in a company’s annual report to front and center on the balance sheet. These new standards are going to require public companies to get their equipment leases in order because they will need more detail.
Click here to read IDC’s Market Spotlight on the new Enterprise Lease Accounting Software or scroll down to learn more about our company.
What We Do
Enterprise Lease Accounting Software
Leases are moving from an often-overlooked footnote to a highly visible line on the balance sheet. Most companies have a handle on their real estate lease portfolio, but even the most largest and innovative companies lack good data on their IT, fleet and equipment leases. LeaseAccelerator’s Global Lease Accounting Engine enables you track debits and credits at the asset level for all operating and capital leases. It provides you will all the data needed to comply with both the current (FASB ASC 840 and IAS 17) and new lease accounting standards (FASB ASC 842 and IFRS 16). Learn more.
Enterprise Lease Administration Software
Companies choose leasing instead of buying because it saves money and offers the ability to refresh technology faster. But most companies never realize those benefits because they don’t proactively manage their leases. Most companies pay 10-12% more on equipment leases than they should. Instead of returning equipment at the end of the lease, companies continue to pay “evergreen fees” well past the end of term <link>. And companies miss savings opportunities of 2-4% on their real estate by neglecting to identify landlord billing errors and failing to recover fees such as security deposits. Using LeaseAccelerator you can track all your leases throughout their lifecycle and capture millions in potential savings. Learn more.
Enterprise Lease Sourcing Software
Most procurement departments aggressively negotiate the purchasing price for equipment such as forklifts, trucks and computers. But they fail to exercise the same rigor when it comes to securing financing for the equipment (i.e. the leasing terms). Using LeaseAccelerator you can put your leases out to bid in a competitive marketplace. Over 500 different commercial banks, independent lessors and manufacturer captive finance organizations can then bid on the leasing opportunity. The result is a significant reduction in cost savings of 6-8%. Those savings adds up quickly for large companies with leasing portfolios in excess of $100M. Learn more.
How We Do It
The LeaseAccelerator applications runs in the cloud using a Software-as-a-Service model.
The LeaseAccelerator application is developed in Java running with a Tomcat web server and an Oracle relational database. We host at a third party data center provider that offers redundant electric utility power feeds, auto-cutover diesel generators and diverse carrier network paths. And every year we undergo a SOC (Service Organization Controls) Level 1 audit to assess our internal controls and procedures.
In addition to a team of rock-star software engineers, we have also assembled a world-class team of leasing experts.
Our customer-facing teams are stacked with individuals who have worked in sales and operations at various banks, vendor captives and independent lessors. We also have leasing professionals who have worked in the procurement, accounting and IT teams of Fortune 500 companies. As a result, we can bring best practices and a “been there, done that” approach to even the most unusual leasing challenges.
One of the key value propositions we offer to Procurement departments is our Global Lessor Network.
This business network brings together Fortune 500 companies who want to lease equipment together with various leasing companies who provide the financing. Over 500 banks, vendor captives and independent lessors from geographic regions ranging from the US and UK to China and India are on the network. As a result, we are able to help Fortune 500 companies find financing for a wide variety of lease types and geographic regions.
Lessees versus Lessors
There are dozens of sophisticated software applications available for the banks, vendor captives and independent lessors that provide financing for leases. However, there are only a handful of applications such as LeaseAccelerator for the lessees that actually use the equipment. Lessor software focuses on analyzing credit, pricing leases and collecting payments.
LeaseAccelerator is designed specifically for lessee’s needs with features such as lease versus buy analysis, competitive bidding, end-of-term management and lessee accounting.
Equipment vs. Real Estate
LeaseAccelerator is one of the only applications on the market designed to support both real estate and equipment leases. Most Lease Administration Software was designed primarily for managing real estate such as retail stores, office buildings and manufacturing plants.
But administering corporate real estate involves a completely different set of issues than managing IT, fleet and equipment leases. LeaseAccelerator is the only application built from the ground-up to manage the unique complexities of equipment including competitive sourcing, partial buyouts/returns and evergreen fees.
SaaS vs. Behind the Firewall
Unlike most of our competitors which have a traditional “behind-the-firewall” software business model, LeaseAccelerator is built in the cloud using a Software-as-a-Service model. That means you don’t have to wait in-line for your IT team to free up resources to setup the application and data center infrastructure. We will set everything up for you.
SaaS also frees you from time-consuming upgrade cycles. We keep the software up to date in the cloud pushing out new releases as accounting rules change or new features become available.
Learn More about Enterprise Lease Accounting
White Papers, Handbooks and Research Studies
Authored by PWC, this white paper explains the complex world of equipment leasing including the key organizational, process and systems challenges associated with managing assets such as airplanes, medical devices and construction equipment to furniture, laptops and printers. Equipment Lease Management Platforms (ELMP) can not only help you comply with the New Lease Accounting Standards but can lead to significant operational efficiency as well.
There are some similarities between real estate and equipment leases. Both have been neglected and under-funded at most organizations. There has been little investment in the people, systems and processes to support real estate and equipment leases.
Learn the 15 Critical Success Factors for Equipment Leasing. Learn how to standardize your lease versus buy analysis; how to competitively source financing; and proactively manage your end of term. By applying these industry best practices you can save millions.