Improving Equipment Portfolio Oversight
A lease is a lease, right? The real estate industry might try to convince you that the same principles of administering real estate leases are the same principles that should be applied to equipment lease portfolios. The truth is that lease administration for non-real estate assets is different. There are different terms, different concepts, and different requirements. You need different, not the same.
Harnessing equipment lease data and documents is difficult for sophisticated and non-sophisticated companies alike. The more diverse the company’s operations are, the more complex the situation becomes. Gathering, abstracting, and reporting on lease data is impossible unless someone owns the process. New quarterly and annual lease accounting calculations cannot be completed without data from this important activity; calculations that are needed by accounting to prepare the financial statements.
New accounting requirements are highlighting the need for processes and procedures around lease activity and data management for equipment portfolios. Decentralized leasing activities and processes can make the adoption of the new standards difficult.
Careful consideration needs to be given, not only to adoption of the new accounting standards, but also to the post-implementation maintenance of the lease documents and data. Without a post-implementation plan, the data will become obsolete quickly. This will necessitate additional work and costs to remedy a situation that could have been prevented.
The key is to assemble a team of professionals that understand the industry and can seamlessly integrate with your accounting, procurement, and operations teams. You need a unique blend of industry, lease administration, legal, and accounting knowledge.
Your team should have this combination of skills to track the obligations that you have, report on upcoming important events, support the preparation of accounting calculations, and identify opportunities for savings. They should be flexible, nimble, and able to work within your unique business structure and internal control policies. The team should be your trusted partner, not just your service provider.
The Fell Advantage:
Fell Lease Administration’s dedicated team has that unique blend of experience to bring a fresh perspective to your lease administration needs. Supported by attorneys, accountants, paralegals, and lease administrators, we can handle every lease administration situation. Our flexible and nimble team creates tailored solutions that integrate with your operations because we know that one size does not fit all.
We understand the documents, the concepts, and the business situations that you encounter every day. From identifying your lease population through providing ongoing lease administration support, we work as your partner to meet you where you are at and bring your lease administration function to the next level.