Sometimes, it seems like laws, rules and regulations are a riddle you need to solve to be in compliance with them. If standards were easier to understand, wouldn’t more people follow them and less people be needed to audit them? This is especially true in the complicated world of commercial real estate.
Take lease accounting standards like ASC 842, for example.
While many struggle to keep up with this codification from the Financial Accounting Standards Board (FASB), it doesn’t make it any less imperative to follow. Fortunately, we know some tips, tricks and strategies to take the guesswork out of ASC 842 compliance.
The ‘Secret’ Solution for FASB and ASC 842 Compliance
So, what are successful lease accountants and commercial real estate professionals not telling you when it comes to compliance? It’s likely that they’re using technology to make it easier. With CRE lease accounting compliance solutions like Quarem, for example, you lay a solid foundation for getting compliant and maintaining standards. You don’t have to worry about navigating overwhelming systems, where to start or how to get an organized income/expense schedule. Plus, Quarem’s customer service team will ensure that you’re maximizing your use of the tool with compliance in mind for lease accounting standards like ASC 842 and IFRS 16.
Features That Help with Lease Accounting Standards
If you’re interested in more detailed information, here are some specific ways Quarem’s platform unlocks the secret to FASB and ASC compliance:
- Centralized data management: All lease data, from critical dates and financial information to documents and disclosures, are consolidated into a single source.
- Automated accounting: Human data entry is prone to errors and is also time consuming. The more you can automate lease accounting tasks (like calculating lease liabilities, right-of-use assets and lease expenses), the lower your risk of inaccuracies will be.
- Customizable reports: Using templates and dashboards, you can build and present reports that focus on the areas of lease accounting where you want to focus.
- Audit trail and monitoring: You need to be able to demonstrate compliance with standards should an audit occur. Quarem’s tool offers robust audit trail functionality, allowing you to track all changes and documentation over time.
- Scalability/flexibility: Finally, you need a solution that won’t remain stagnant. The CRE software you choose should scale with your portfolio, whether it’s a handful of leases or a vast line of properties, limiting your compliancy risks as you grow.
The secret to FASB and ASC 842 compliance isn’t that complicated. To see how Quarem can help you maintain your lease accounting standards, request a demo today.
