For years, companies didn't pay much attention to their assets and property. It wasn't until recently that lease management has become an essential part of financial reporting and the bottom line. Lease management involves tracking and optimizing all leased assets, including real estate, vehicles, technology, and more.
If leasing is part of your business expenses, now is a great time to consider hiring a leasing accountant. Here’s what you need to know about this crucial role in managing your company’s budget and bottom line.
What Is a Leasing Accountant?
A lease accountant is someone who manages the accounting details and activities for all leased assets. A lease accountant plays several important roles, including:
- Lease classification
- Conducting routine lease reviews
- Generating and reviewing lease accounting schedules
This person will have a dedicated role in tracking and optimizing the company’s leased asset portfolio. Lease accountants work to reduce lease-related expenses by reviewing lease length and structure, as well as comparing the cost of leasing versus buying.
A lease accountant is also in charge of various accounting tasks, including paying lease charges, generating reports, calculating liability figures, and executing remeasurements as leases change.
Benefits of a Leasing Accountant
Before new rules were enacted, lease accounting had very little impact on financial reporting. In fact, most companies didn’t include lease information on their balance sheets. However, under the new lease accounting standards, non-profit and corporate organizations must record right-of-use assets and payment liabilities that are lease-related.
Adding the value of a company’s leased portfolio is a huge change. It can also have a notable impact on financial reports. In turn, if your company has poor lease management due to poor lease decisions, the risks and impacts are amplified.
This is why it’s so important to hire a leasing accountant. Having a dedicated person to carefully analyze and manage lease decisions is crucial. Without a leasing accountant, there’s a risk of:
- Spending too much on leased assets
- Making uninformed leasing decisions
- Missing payments
Even if your company’s leasing portfolio is relatively small, it still pays to have a dedicated accountant who is focused just on these assets.
Looking For Leasing Accounting Services In New York?
Now that you know the benefit of having a leasing accountant, you may be more eager than ever to find one. If you’re looking for a team that specializes in assisting businesses and the self-employed with a wide range of accounting and financial services, choose SL&C.
From financial accounting to reporting and tax compliance, you can count on our CPA firm for a personalized and highly responsive professional service. Contact Satty, Levine & Ciacco, CPAs. P.C. to discuss your lease accounting needs.