As January rolls in, it’s the perfect time for lease portfolio managers to get their year off to a great start. A solid monthly checklist can streamline your lease accounting processes, ensuring compliance and accuracy while enhancing your overall lease management strategy.
Benefits of a Monthly Checklist
A monthly checklist for lease accounting helps maintain organization, ensures timely compliance with accounting standards and minimizes errors in lease management.
By regularly reviewing your lease portfolio, you can quickly identify discrepancies, adjust to changes in regulations and make informed decisions that support your organization’s financial health.
Review Lease Agreements
Begin your month by reviewing all lease agreements. Ensure that you are aware of any renewals, modifications or terminations that may have occurred. This review will help you stay informed about your obligations and rights under each lease so that you are prepared for any upcoming deadlines.
Update Lease Records
After reviewing your agreements, update your lease records. Make sure all changes have been accurately reflected in your accounting system. This includes any new leases, amendments or terminations. Keeping your records up to date will help you avoid future discrepancies and ensure accurate financial reporting.
Verify Payment Accuracy
Next, verify the accuracy of lease payments. Check that all payments made in the previous month match the amounts outlined in your lease agreements. This step is crucial for financial integrity and ensuring that you are not overpaying or underpaying.
Assess Lease Liabilities and Assets
Assess your lease liabilities and assets regularly. Calculate the present value of your lease obligations and ensure they are accurately recorded on your balance sheet. This assessment helps you understand your financial position and prepares you for potential audits.
Review Financial Statements
Review your financial statements for accuracy and completeness. Ensure that all lease-related transactions are correctly reflected in your income statement and balance sheet. This review will help you identify any anomalies and keep your financial reports reliable and transparent.
Compliance Checks
Conduct compliance checks to ensure your lease accounting practices follow regulations, such as ASC 842 or IFRS 16. Verify that all leases are classified correctly and that you have met disclosure requirements. Staying compliant will reduce the risk of financial penalties and boost your organization’s credibility.
Communicate with Stakeholders
Finally, maintain open lines of communication with stakeholders. Share relevant lease information with your finance team, auditors and management. Regular updates improve collaboration and ensure everyone is aligned with lease management goals.
Account for Everything With Scribcor
If you’re looking for more ways to set the tone for the year ahead, we encourage you to reach out about Scribcor’s lease accounting services. Let’s work together to streamline your processes and enhance financial reporting.
Contact us today to get started!