A Two-Fold Challenge
When FASB 842 and IFRS 16 were released in 2016, the General Ledger Manager for this privately held consulting firm knew she wanted to be ahead of the curve – continuing to use spreadsheets for lease accounting wouldn’t be enough. The company wanted to have a solution in place well before the January 2020 deadline to ensure their compliance.
She also had another challenge: the company’s lease documents were kept in PDFs that were categorized by year and location. Responding to requests for lease information was a cumbersome process.
The Solution: A Holistic, Fully Compliant Lease Accounting Solution
“We were in search of a holistic solution,” she says, and LeaseQuery was the only option that fit the bill. She found that other companies couldn’t address the accounting solution or they were better suited to landlords. “There was no competition for this online.”
200 Hours Saved Per Year
LeaseQuery has saved this customer time through several efficiencies, and the auditing process is perhaps where it’s been most impactful:
“We used to have to give our auditors all the files and do special reports on all leases for the new year, and it was such a pain… With LeaseQuery, we just gave them a login. They can pull reports on new leases and all the data is right there.”
In the past, the accounting team would prepare for their annual audit once or twice a year, a process that took 40-60 hours. Because of LeaseQuery’s reporting features, they’re able to prepare for their audits on a monthly basis, which enables them to find and address errors more quickly.
Quick Access to Data
Instead of having to request lease data for ad hoc requests – a process that sometimes took 3-4 hours – the GL Manager has access to that information at her fingertips: “When I’m in a meeting with my boss, I can just go in and pull up the documents that I need.”
“You can do [lease accounting] in a really complicated software, but it’s easy to poke around in LeaseQuery.” The less time she spends figuring out how to use the software, the more time she can devote to other tasks.
All told, she estimates that, “LeaseQuery has saved us at least 200 hours a year… We’ve saved time, gotten enhanced reporting, and it’s more accurate.”
White Glove Service from the Start
From the beginning of the sales process, through implementation and after going live, she appreciates the responsive service she gets from LeaseQuery. “It was a good experience. I wanted to make sure I understood it and they were patient and took their time.” On an ongoing basis, her team will reach out to their Customer Success Manager with questions and suggestions, and she says, “It’s still a good experience.”
Deeper Knowledge of Lease Accounting
This company’s accounting team strives for perfection, down to the penny. Through the implementation process, they discovered that there were some errors in the company’s records, due to the way they interpreted the guidelines.
She found that our lease accountants “put things in perspective in a way that we could understand… I felt I grew as an accountant going through the onboarding process.”
Ability to Quantify and Forecast
“Without this tool, you don’t know what you don’t know.” With the customized reporting feature, the accounting department has been able to:
- Quantify the impact of the new standards
- Quantify how they will impact the company’s debt on their balance sheet
- Project the costs each reporting location will incur in a specific time frame
Improved Interdepartmental Communication
She also says that one of the unexpected benefits of LeaseQuery is that “Communication between the accounting team and the real estate department is now coming from one source. It helps us to get and keep the right documentation.”
Alignment with Company Culture
This customer now has a solution that exceeds their initial goals: “We book what we have in LeaseQuery. Our auditors see what we have in LeaseQuery, and we generate financial statement footnotes right from the software.”
Ultimately, it enables them to achieve their most critical goal: “It’s very transparent and easy to be correct.”
- Engineering and construction consulting firm
- Privately held
- 100+ leases, all real estate
- Adopted LeaseQuery in 2016
Our Clients Explain Our Lease Accounting Solutions Best
"It took a time-sucking, life-sucking process and turned it into the click of a button"
"LeaseQuery is years ahead of our external auditors in terms of lease knowledge and financial reporting, saving our company time, money, and resources."
"We are able to instantly pull up all of the details on any given lease with only a couple of clicks. "
"The time and productivity savings cannot even be put into words for a team with such stretched bandwidth like ours."
"This is a breath of fresh air for an occupation that’s usually treated with bored stares, long sighs and slow blinks...I was actually liking lease accounting for the first time in eight years."