If you’re at all familiar with the National Football League (NFL), you’ve heard the name Aaron Rodgers. He’s arguably one of the greatest quarterbacks of all time. But he didn’t start that way. He began his career with several years on the bench, learning from and watching the starting quarterback, Brett Favre, while receiving minimal playing time.
How does this relate to commercial real estate? Well, it goes to show that when there is something complex you need to learn (like an NFL playbook or FASB standards), there’s no shame in turning to the experts for guidance. We’re here to proactively educate you on common FASB reporting mistakes to help you mitigate risk of these errors in the future.
Here are six tips for successful FASB reporting:
1. Go through a checklist to ensure you’re set up properly.
Football players go through the motions countless times before doing the real thing. Before you get started on your FASB strategy or reporting process, make sure you’re set up properly by following a checklist. At Quarem, we provide users with a lease accounting setup checklist with helpful pop-up menus that direct you on where to start and how to proceed.
2. Make sure you can access all desired metrics.
Reporting is only as good as the data it features. If you’re unable to access FASB-related data points like IBR, term, lease vs. non-lease payments, fiscal year and so forth, then you need to reevaluate your reporting process. Investing in CRE software is a good place to start, as these tools are robust and filled with valuable metrics.
3. Organize your income/expense schedule.
Create the income and expense schedule for the lifecycle of the lease from the beginning in the lease abstract. Calculate and generate an amortization table by capturing all required metrics, as mentioned above. (By the way, CRE software automates this part.)
4. Use a tool or system that isn’t overwhelming.
Just like NFL rookies can get overwhelmed if they’re thrown out on the field too early, CRE pros can have difficulty overcoming the demands of FASB reporting. By using a commercial real estate software solution like Quarem, you can make your life easier.
5. Customize reports to show what’s most important.
Whether you prefer templated or customized reports, make sure it’s showing what you want it to show. Tell the story of your portfolio with data that is valuable, accurate and up to date.
6. Keep all versions of related documentation.
Finally, make sure you’re keeping copies of all documents involved in the FASB reporting process. Whether executives would like to see proof of certain trends or you need to reference a metric for future contract negotiations, having these docs handy will save you stress. Quarem also helps in this area, keeping all variations of documents stored securely on the cloud while letting users easily share and collaborate on them.
If you’d like to see robust FASB reporting features in action for yourself to experience all the benefits of CRE software referenced, request a demo of Quarem today.