Lease accounting and lease management designed for childcare providers
Managing your childcare lease portfolio
Childcare facilities have many different leases, licences, easements and contracts to keep track of. We know how important it is to manage your portfolios as closely as possible – especially when it comes to making informed decisions around growing your business.
With leases and sub-leases stored in all manner of places, it can be difficult, if not impossible, to produce accurate, useful, consolidated reports on your child care property and asset portfolios and to management them efficiently.
Changes to lease accounting – IFRS 16
If lease management wasn’t challenging enough, childcare providers are faced with the adoption of IFRS 16, the new lease accounting standard – effective 1 January 2019, which could make leases the most material item on your balance sheet.
The new requirements will directly impact the financial performance of your organisation so it’s essential you get it right. We expect businesses operating in the childcare sector to see an increase in recognised assets and liabilities, more leases recognised in earlier periods of a lease and less in later periods, a shift in lease expense classification and amortisation, and an increase in net debt/EBITA ratios.
Given the complexity involved, we recommend you invest in a lease management and lease accounting platform that is IFRS 16 compliant.
Nomos One can help
Nomos One is the complete, cloud-based, lease management and lease accounting software solution for the management of leases, sub-leases, licences, sub-licenses, easements, grants, resource consents and general contracts.
With our software, you’ll benefit from automated calculations, a clear simple dashboard, event reminders, intuitive workflow, custom reports and fields, and the ability to automatically generate legal documents.
Our robustly tested IFRS 16 module automatically calculates right-of-use assets and lease liability and generates journals, depreciation and interest schedules, giving you complete confidence in your IFRS 16 compliance.
“It used to be that there was a spreadsheet and a whole lot of folders that were really quite confusing, and that was it. There was no system. We’d end up being blindsided by things that were going on.
We love the reminders. Because we can set how far in advance we’re notified, it gives us a chance to talk about what we want to do. It’s great for our finance team as well. For them, they rely on Nomos One to remind them about when and what the rent escalators are.
I’m very happy to recommend Nomos One. It gives you a real strategic advantage that helps make informed business decision about our portfolio. We find it to be great value, really useful and our processes have definitely improved as a result.”
Legal and Compliance Manager
Only About Children