Lease management and lease accounting software selection guide
Nomos One IFRS 16 resources
End-to-end lease management and lease accounting software will give you conﬁdence that you’re meeting your obligations, free up staff from manual, repetitive and time-consuming tasks, and create efficiencies for everyone involved in lease management and lease accounting across your organisation.
If you choose the right solution you should see an almost immediate return on investment.
Choosing the right solution
With a range of providers in the market, each showcasing different features, it can be difficult to compare solutions like-for-like.
On the surface, software solutions may seem comparable, but by digging a little deeper you’ll be able to identify a solution that will give you confidence in your compliance and provide the best value for your organisation.
Seven questions you must ask providers before choosing software
Is the lease accounting component truly IFRS 16 compliant?
It’s imperative any solution you adopt is compliant with IFRS 16 – many claim to be. Our advice is to make sure the claims stack up.
Some of the solutions on the market are compliant when it comes to basic leases, but not complex ones.
Make sure the solution you select has been tested against a wide range of scenarios provided by global accounting firms.
You should also ask if the solution includes provisions for breakout non-lease components, variable lease payments capture, sale and leaseback arrangements, sub-leased agreements that are classified as finance leases, and business combinations.
Does the company employ chartered and certified accountants who understand IFRS 16 and its requirements?
IFRS 16 is a particularly complex standard and getting it wrong will impact your company’s ﬁnancial statements and ﬁnancial performance.
No matter how diligent or thorough they are, if the provider doesn’t employ professional accountants who live and breathe IFRS 16, they won’t fully understand your requirements. It also means their developers won’t have access to in-house experts who understand how you need the software to work from a usability perspective.
Is the product flexible and customisable?
Every organisation has different preferences for they’d like how their portfolios set up, including groupings, naming conventions and the data they would like included in reports, templates and other documentation.
It can be confusing for users and stakeholders if software and reports include inaccurate fields, naming conventions and irrelevant data.
Make sure the solution you adopt includes unlimited custom fields and reports, and that you can choose how to set up your portfolio.
Can you add an unlimited number of users (for free)?
Lease management affects more than just one team. Stakeholders can include property management, fleet management, legal teams, finance teams, business support, office managers and IT teams, as well as external stakeholders like auditors.
Having all relevant documentation and data stored in one place ensures your organisation has a single-source of truth when it comes to leases. An end-to-end solution creates efficiencies across teams as well as within them, so it’s important that all relevant stakeholders have access.
A good provider will allow you to add unlimited users with a range of access and permissions at no extra charge. Be wary of hidden costs associated with adding users including for additional licenses, training and support.
Is the software intuitive and easy-to-use?
For your organisation to realise all of the benefits of an end-to-end lease management and lease accounting solution your team actually needs to use it.
You can have the best functionality in the world, but if the interface is complex, or off-putting in any way, your team will avoid it.
Does the company offer onboarding services, training and support?
Having your data and documentation onboarded by a team of professionals takes a huge amount of pressure off your team and ensures that any gaps or inconsistencies in your information are identified and resolved.
In our experience, having a team of experts review your information can pick up issues that, if missed, could cost your organisation a significant sum.
Like any software, to get the most out of it, your team needs to feel confident and supported when using it. Make sure the provider you select has a dedicated training programme and offers ongoing support. Again, look into any hidden costs that might be incurred for additional training or support.
For more advice on software selection and what to include in your request for proposals, download Nomos One’s software selection guide here.
Read more about Nomos One and review the product features here.