Lease Management Systems vs. Aptitude Software Lease Accounting Engine: What’s Different?
The post below outlines some of the differences between a typical lease management solution and the Aptitude Lease Accounting Engine.
Many organizations with significant lease portfolios have used Lease Management Systems to help manage lease renewals, payments, facilities management and other lease related tasks. The introduction of the new leasing standard will not only reinforce the importance of lease management systems, but also introduce the need for a best of breed lease accounting solution that works with general lease management software.
Many organizations are currently managing leases on spreadsheets as the accounting has been very straightforward and the lease accounting hasn’t impacted the financial statements. Now that operating leases are joining other assets on the balance sheet, companies with significant lease volumes will need a solution more robust than Excel.
Others have lease management systems in place which can provide a central system for leases and does well at things like managing lease renewals, lease payment reconciliations, environmental performance management and facilities management. However, lease management systems do not tend to have robust accounting capabilities and may not be able to handle the financial and accounting complexities and data volumes triggered by the new standard. Furthermore, if your organization is behind on version upgrades, catching up could take time and money and put you at risk of missing the 2019 compliance deadline.
The Aptitude Lease Accounting Engine (ALAE) is not a traditional Lease Management System. Instead it can work with lease management systems or integrate leases from disparate systems or Excel files across your organization. ALAE specifically addresses the finance and accounting complexity created by the new leasing standard. It is purpose-built to addressing the following areas:
The Aptitude Lease Accounting Engine (ALAE) provides a route to full compliance with the new IFRS 16 / ASC 842 leasing standard. ALAE fully supports lessee and lessor accounting requirements and works within your existing architecture to address the significant finance complexity around consistency of accounting application, calculations, transitions, Multi-GAAP requirements and more.
We are currently engaged in several leasing discussions with enterprise organizations around the globe and would love to discuss your leasing standard challenges.