A cloud has been hanging over the accounting world for the last two years related to the new lease accounting standard, ASC 842. The new standard was issued by the Financial Accounting Standards Board (FASB) and involves a significant shift in reporting lease obligations on financial statements. Upon adoption, companies will need to report lease liabilities and right-of-use assets on the balance sheet. The process proved to be so challenging for public companies that FASB has twice extended the deadline for private companies, which have until the end of 2021 to adopt the standard. The reality is setting in that action needs to be taken.
National Lease Advisors is helping private companies with a turnkey solution that leverages our firm’s track record in lease administration, experience working with public companies to adopt ASC 842, and assessment of proven accounting software solutions that meet our company’s stringent standards.
According to Michael Muna, co-founder of National Lease Advisors, the program evolved from working with and observing the challenges faced by public companies. “Knowing that many private companies do not have the budget and human resources enjoyed by public companies, we have developed a turnkey solution that brings together lease administration and accounting systems to ensure a successful adoption for any company with a portfolio of leases.”
We have developed a turnkey solution that brings together lease administration and accounting systems to ensure a successful adoption for any company with a portfolio of leases.
Tiffany Smithson of National Lease Advisors adds, “Having now worked with public and private companies to meet the adoption challenges successfully, we know how critical it is to look at the big picture when going through the adoption process. We are hands-on in developing the game plan, determining the right software solutions, digging in and evaluating every lease. Our approach is to work closely with each client’s real estate and accounting teams to ensure the most accurate reporting possible.”
“One of the biggest mistakes we see are companies trying to accomplish the adoption in a vacuum,” added Muna. “The focus is usually on the accounting software, which misses how critical it is to have an in-depth understanding of leases and how that knowledge plays a big role in the adoption process.”
We know how critical it is to look at the big picture when going through the adoption process.
The team at National Lease Advisors recognizes the need for good software, and the new accounting standard has resulted in dozens of systems claiming to have the answers. According to Muna, “We have evaluated most of the systems in the market and have decided to partner with a few that we feel offer solid solutions for our clients. What is important to know is that there is no one system that is best for everyone. We evaluate each client’s portfolio and goals and then utilize the system that we feel best matches those needs.”
To learn more about National Lease Advisors’ turnkey solutions to ASC 842, contact Michael Muna at firstname.lastname@example.org, or call 833-204-2254.