As we enter the final stretch of 2021, transitioning to the new lease accounting standard, ASC 842, is becoming a challenge for many organizations. National Lease Advisors provides its clients with a turn-key solution that brings together our expertise in lease administration and lease accounting, along with a proven software platform, to solve quickly and easily one of today’s biggest accounting challenges.
While National Lease Advisors serves many industries, credit unions have made up a significant portion of our new clients in 2021. Regardless of their real estate portfolio size, this critical industry that services its communities and members is highly regulated. Their accounting teams realize the importance of accurately maintaining the financial statements that the new lease accounting standard will impact.
ASC 842 Background
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 so challenging for public companies required to adopt by 2019 that FASB has twice extended the deadline for private companies.
Why National Lease Advisors
National Lease Advisors can leverage our firm’s track record in lease administration, past experience working with public companies and their auditors to adopt ASC 842 in 2019, 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 credit unions might not have the budget and human resources enjoyed by larger public banks, we have developed a turn-key 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, have the right software solutions, and know-how to dig into and evaluate 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.”
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 offer solid solutions for our clients. Our service utilizes these proven non-proprietary systems so our clients can bypass the months of software evaluations, not to mention the risk of choosing one that proves to fall short of expectations.”
To learn more about National Lease Advisors’ turn-key solutions to ASC 842, contact Michael Muna at [email protected], or call 833-204-2254.