Equipment leasing, if managed effectively, can offer a number of strategic financial and competitive benefits to your business. Through our work with some of the world’s largest companies, LeaseAccelerator has identified a set of 15 critical success factors that best-in-class companies use to manage their equipment leasing program.
This guide explains the five major steps you need to understand at the beginning of your project. Following these steps will reduce your likelihood of having to repeat steps later. Plus, it will help you on your way to a successful and efficient implementation project for Day 1 of the new standards and beyond.
Each year hundreds, if not thousands, of assets will come off lease. Some leases will be renewed. Equipment assets may be returned or purchased. Real estate leases could be expanded, contracted or terminated. Some of these changes such as moving out of your corporate headquarters building will have high levels of visibility. But others such as swapping out photocopiers in the Singapore office will not. Have you considered what process you will use for tracking lease renewals and other end of term events?
To ensure your lease accounting remains compliant you will not only need to track new leases, but also changes to existing leases throughout their contract terms. Real estate leases might have variable rents that change periodically. Floor space might expanded or contracted. Space could be subleased to other tenants. Leased equipment assets might be moved between locations, upgraded with additional components, or even lost, damaged, or stolen. What processes will you establish for tracking lease changes.