Your clients trust you to make the best recommendations for their business. As part of this offering, you need to be aware of the various options out there, and tailor your guidance to the specific needs of the client.
With the world changing so quickly, this can be a daunting task. New methodologies, new markets, new regulations and new approaches mean that keeping up is a massive challenge.
The good news is that in most cases, technology – and software in particular – can be leveraged to keep up with this changing environment, and stay ahead of the next trend.
Lease accounting for ASC 842 is no different. Risks abound; a new standard, ever-changing regulations, and what can be a complex implementation process. Yet software offers a way to not only address these risks, but to take advantage of an incredible opportunity.
The future is SaaS
Many professionals will recall the days of helping clients implement massive software packages across the organization. Others will remember massive server rooms on company premises.
Both of these are quickly becoming a thing of the past. Today, as we’ve all seen, cloud-based software-as-a-service is replacing unwieldy installed software packages, providing a solution that is more affordable, better performing, and more effective. Servers have also moved to the cloud and providers like AWS, Microsoft Azure and others are now providing server capacity to the largest and smallest organizations in the world.
From an accounting and finance perspective, the same thing is true. Instead of having to install specific programs for specific tasks, today these can be added quickly and painlessly, thanks to the SaaS model.
Challenges in implementing ASC 842 with your clients
As we’ve discussed, lease accounting can be complex – especially with the new changes brought about by ASC 842.
- Identifying all leases across the organization
- Ensuring all embedded leases have been taken into account
- Scanning or otherwise inputting all leases into the system
- Ensuring accuracy
- Ensuring any changes to leases have been accounted for correctly
- Ensuring correct and updated accounting policies are followed
- Ensuring fully compliant disclosures
- Having all documentation audit-ready
- Offering visibility to all stakeholders
With your clients looking to you for advice and guidance, this increases the pressure to provide solutions and answers that will address these challenges.
A SaaS managed service model for your ASC 842 clients can make these challenges a lot more manageable. Automated lease accounting software has been used and recommended by the leading audit and consulting firms in the world to do just this.
Introducing the SaaS managed service model for ASC 842 clients
To take just one example: ongoing compliance with ever-changing standards. SaaS-based automated lease accounting software is automatically updated with the latest regulatory changes, ensuring that your clients are always compliant with the most updated standards.
Other areas where this solution can completely change the way your clients carry out their lease accounting are:
Automating data extraction: using AI-enhanced technology, your clients can automatically extract data from source documents such as Excel files and PDFs.
Leveraging AI-powered technology: reading and understanding leases and translating them into a live 360° data image of your transactional workflow.
Streamlining ASC 842 workflows: automating ASC 842 workflows to eliminate error and streamline operations to a fraction of the time it would take without SaaS-based lease accounting software in place.
What’s more, SaaS-based lease accounting software can simplify journal entries, and create a clear audit trail that’s accessible to both you, and your clients.
Providing ASC 842 Value
Implementing a SaaS-based managed service model for ASC 842 clients has further benefits. You can assist them in:
- Producing 100% accurate and consolidated reports in minutes
- Effortlessly tracing their audit trail back to the source data
- Accessing simple reports and clear financial schedules
Much of this just wouldn’t be possible with traditional accounting software. Whereas SaaS-based accounting software can be integrated in minutes, with no disruption, traditional software requires a significant amount of resources just to get started.
All this means that you can add tremendous value to your client, both in terms of improving their lease accounting workflows, but also in allowing them to focus on high value activities.
Why a SaaS managed service model for ASC 842 clients
As we’ve seen, SaaS is increasingly viewed as a strategic move for businesses. When it comes to finance and accounting, this is just as true.
A SaaS managed service model for ASC 842 compliance provides enormous benefits to your clients, and ultimately for yourself, too.
It increases efficiencies, decreases costs, adds immense value, and places you at the forefront of the technology and thought leadership landscape.
To find out more about how you can add a SaaS managed service model for your ASC 842 clients, get in touch with Trullion today.