Key Reasons to Outsource Lease Accounting

ARTICLE | June 12, 2024

We all know that the recent new lease accounting standards, such as ASC 842 and GASB 87, added steps to the monthly accounting process and additional disclosures to annual reporting, but it added other complexities as well. How you interpret a lease document impacts how the transaction is recorded and could result in incorrect financial statements. Many companies have struggled with complying with these new rules, as they don’t have the resources or technical expertise in-house.  Consequently, companies are seeking viable solutions to navigate these complexities. One solution that is gaining in popularity is “outsourced lease accounting“. With Insero & Co. CPAs, you can outsource lease accounting to experts who are not only efficient and accurate but who can also offer you a range of additional benefits.

While the primary reason to outsource is to get access to a software platform and resulting financial reports, there are other benefits to resources that work with lease accounting on a daily basis.  At Insero & Co, CPAs, your outsource lease accounting partner can help you save money and achieve your financial objectives by suggesting changes to draft lease agreements and ensuring you are not overpaying a landlord for maintenance and other costs.

Outsource Lease Accounting for Access to Expertise and Efficiency

The first and perhaps most compelling reason to outsource lease accounting is access to skilled and experienced accountants. At Insero & Co. CPAs, our team is well-versed in the intricacies of lease accounting and the changes introduced by ASC 842 and GASB 87. With our specialists handling your lease accounting, you can bypass the steep learning curve and rest easy knowing that your accounting needs are in capable hands. Our teams are proficient in interpreting lease agreements, validating calculations, generating entries, and producing disclosures, ensuring that your lease accounting is accurate and compliant.

Avoid the Cost of Purchasing and Learning New Software

Implementing new lease accounting standards often requires significant investments in specialized software. Additionally, your team will need to undergo extensive training to effectively use these new applications. When you outsource lease accounting to Insero & Co. CPAs, you forego these costs and hassles. We already have the necessary technology platforms and our team is proficient in using them. This means that your lease accounting can be carried out efficiently without any additional expenditure on your part.

Experienced Help With CAM and Landlord Audits

Common Area Maintenance (CAM) charges and landlord true-ups can be a significant expense for companies that lease property. Did you know you could request backup for landlord charges and “audit” their true-up calculations?   At Insero & Co. CPAs, we have extensive experience in conducting CAM audits. We can identify common areas of mistake and provide you support to negotiate effectively with landlords to ensure that you only pay what you owe. This can result in significant savings, especially if you have not audited landlord charges recently.

Assistance in Lease Drafting for Optimal Accounting Impact

Finally, we can help you read and understand leases before you sign them. Our experts can suggest changes to your lease draft to ensure the best accounting and financial impact for your company. This proactive approach can help you avoid costs and optimize your financial metrics and debt covenants.

In conclusion, the decision to outsource lease accounting to Insero & Co. CPAs offers a range of benefits. Our expert team, established technology platforms, CAM and landlord reconciliation service, and proactive lease drafting advice can save you time, money, and stress. By partnering with a reputable outsourcing provider such as Insero, businesses can experience cost savings, improved accuracy and compliance, and the ability to focus on their core activities. Contact us today to find out more about how we can help you manage your lease accounting needs.