Four Reasons Why Procurement Needs to Be Involved in Your Lease Accounting Project
Best Practices for Enterprise Lease Accounting
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Use this Guide to learn how to:
- Identify New Lease Contracts Being Signed
- Track End-of-Lease Buyouts and Renewals
- Reduce Level of Effort to Collect Data from Leases
- Capture Operational Data Not on the Lease
Learn best practices such as:
- Automating Notification Processes
- Standardizing Lease Agreements
- Electronic Data Feeds from Lessors
- Mandatory Lease versus Buy Analysis
Why Involve Procurement?
During the implementation process, you will be able to draw from project teams, outside consultants, and software vendors to help collect and analyze leases. However, after implementation, most of your available project resources will be reassigned to the next big accounting change or compliance project. You will need to devise smarter approaches to analyze and report leases. Continued successful compliance with the new standards will require a broad effort spanning more than just your Accounting department.
A partnership with Procurement will be critical to this success. Procurement handles the front end of the leasing process, putting them in an excellent position to enforce the internal controls that will be necessary to ensure the accuracy of accounting. At many companies, though, Procurement is not heavily involved in the lease accounting project.