The new FASB lease accounting standards have created ripples in the facilities industry with companies scrambling to achieve compliance before the 2019 deadline. Unfortunately, many of the organizations who fall under this statute do not have a streamlined lease administration process. Manual spreadsheets, inefficient and disparate lease management software have made the transition challenging. Accounting and consulting firms have leveraged their technical expertise to guide companies in their path forward.
One such global audit, tax and advisory firm elected to develop and market a hosted lease management software tool to aid their clients in achieving FASB lease accounting compliance. They wanted the tool to be user-friendly with project management and tracking abilities, maintain internal controls, and provide financial reporting and business intelligence capabilities. The firm selected IBM TRIRIGA lease management software capabilities for its extensive out-of-the-box capabilities but wanted to add validations like specifications for when to review assumptions and to ensure accountability of balance sheet accuracy.
The firm wanted to leverage the enhanced functionalities of the IBM TRIRIGA Real Estate Manager and selected ValuD as their strategic partner for implementation and development. ValuD partnered with the accounting firm to identify gaps in accounting features and suggested business process improvement measures. Quick links in the portal pages provided record and report ready access. Custom reports were created to enhance the ‘business intelligence’ value of the tool. The internal control process was enhanced with an automated workflow approval process (rather than a dollar threshold or exception based) thus providing an audit trail.
With the statutory requirements not yet in place, the lease management software tool had to be adaptable to include future enhancements and had be deployed seamlessly to the firm’s customers. As a result, a hosted delivery model was chosen to ensure customers were on the latest release. ValuD built the lease accounting tool allowing configuration flexibility that accommodated varying business processes for the firm’s client base. Most importantly, the tool provided structure to lease accounting projects by aggregating lease information from various sources (legacy systems and databases) and facilitated accurate report generation.
The Lease Accounting software tool was one of the first to be launched in the market exclusively for new lease accounting standard compliance. The firm attracted new clients which created a new revenue stream. The firm’s clients achieved statutory compliance, gained better control over their lease portfolio and process efficiency, and improved security with the hosted model.
By putting our TRIRIGA expertise into the ultimate test of custom lease accounting tool creation, our lease accounting experts have been able to further demonstrate ValuD’s expertise at all things TRIRIGA- a fact that was acknowledged by the accounting firm who commented,
“If we weren’t going to build in-house, we wanted a partner that would practice the same high-level of development rigor we use, …We found that in ValuD. Their people have deep technical knowledge of the TRIRIGA application, and they take that expertise the extra mile.”