Excel is one of the most trusted tools in the accounting industry, but it’s not the right choice for IFRS 16. Here’s 5 reasons why.
#1 Human error
- World class IFRS 16 software solutions like Nomos One have been robustly tested against hundreds of scenarios provided by global accounting firms – your Excel spreadsheet hasn’t.
- IFRS 16 is an incredibly complex standard. Making changes to complicated formula can introduce a multitude of unnoticed errors.
- A typo or incorrect formula can dramatically alter your organisation’s financial position.
#2 Data integrity
- The finance team isn’t the only team responsible for making sure your organisation’s leasing obligations are met. The legal, procurement, property management, facilities management, fleet management, business support and even the IT team may be involved.
- Without a single repository, it’s almost unavoidable that critical lease data held by different stakeholders will diverge. This will affect the integrity of the data you are relying for reporting purposes.
- An end-to-end solution servicing your entire organisation ensures changes to lease term and rates will automatically be accounted for in your financial reporting – you won’t have to verify and transcribe data.
- Nomos One allows you to assign different stakeholders, both inside and outside of your organisation, with different levels of access.
- With Excel, it’s difficult to track who has made changes and on which dates.
#3 Efficiency and scalability
- A fit-for-purpose IFRS 16 compliant model will ensure your finance team can focus on high-value and business critical transactions instead of manual, repetitive, complex and time-consuming tasks.
- The more leases you add to your portfolio the more unmanageable your Excel spreadsheet will become.
- The audit process is far easier for your organisation and your auditor when they can see exactly what data is used and why.
- An all-in-one lease management, lease accounting and contract management solution like Nomos One means you don’t need a range of different tools and manual solutions to manage your lease portfolio – eg fleet and asset lease management tools, Excel worksheets, contract management software, document repositories.
- If the person who created your IFRS 16 Excel spreadsheet leaves your organisation, they’ll take the knowledge of how and why they set it up the way they did and all its inner workings, making it challenging to update and maintain.
- If you miss an important lease event, you risk breaching your contract, over or under paying rent, incurring penalties or missing renewal dates. Nomos One has event reminders and other compliance features so you don’t put your organisation at risk.
- The transition to IFRS 16 is complex and requires substantial judgement. Nomos One’s IFRS 16 module walks you through the requirements so you don’t overlook anything.
- All of the IFRS 16 formulas and calculations are done in accordance with the standard, giving you confidence in your compliance.
#5 Real support
- Nomos One offers an onboarding service which includes a careful review of all your data and documentation.
- With Nomos One you’ll benefit from continual improvements to the software.
- Our team includes IFRS 16 experts.
- With Nomos One you’ll receive unlimited training and support.
- Unlike an Excel spreadsheet, partnering with Nomos One means you are not alone.
When it comes to lease management and lease accounting Nomos One has you covered.
Read more about our IFRS 16 lease accounting module here.