Issue link: https://resources.tangoanalytics.com/i/1465882
Copyright © 2024 Tango. All rights reserved. 6 2024 Lease Buyer's Guide to Lease Administration & Accounting Feature Set • Property Tracking • Real Estate Lease Tracking • Non-Real Estate Lease Tracking • Asset Tracking • Lease Terms & Options • Key Dates • Key Clauses • Contact Management • Maintenance & Repair Obligations • Insurance Tracking • Rent & Operating Expense Tracking • Rent Payment • Recurring & One Time Payments • Document Management • FASB 842/IFRS 16 Lease Accounting • Credits & Offsets • Tenant Billing • Accounts Payable Payment Export/Import • General Ledger Export • Vendor Import • Common Area Maintenance (CAM) or Operating Expense (OPEX) Management • CAM/OPEX Reconciliation • Payment Allocations • Consumer Price Index (CPI) Escalations • System Security • Workflow • Standard Reports Make sure you understand how easy it is to get data in and out of the system. Does the provider have standard out-of-the-box integrations, or will you need to build them from scratch? Do they have an open API? Getting this part right is not a nice to have, it's essential. Compliance A software provider's level of compliance is an important measuring stick when it comes to selecting the right partner. FASB/IFRS Compliance Compliance takes many forms. Let's start with the first and most obvious compliance that is needed for a lease accounting solution—FASB ASC 842 and/or IFRS 16. The Financial Accounting Standards Board sets accounting standards that companies following GAAP must follow. ASC 842 is the current standard for lease accounting. IFRS, or the International Financial Reporting Standard, is a similar regulatory body that governs international accounting and IASB 16 is their version of the current lease accounting standard. Any solution you look at must have lease accounting methods that comply with these current standards. And don't take the vendor's word for it. Make sure anyone you're considering has been vetted and validated by a reputable third party accounting firm. SSAE No. 18/SOC 1, Type II and SOC 2, Type II According to Colocation America, "SSAE stands for Statement on Standards for Attestation Engagements, which is overseen by the American Institute of Certified Public Accountants (AICPA) and more specifically the Auditing Standards Board (ASB). Integrations Another important technical requirement is system integration. For enterprise-size organizations, and some mid-size companies, financial integrations are imperative. These integrations typically include accounts payable to pay rent and other expenses, a vendor import to pull in landlords, accounts receivable to collect rent from sub-tenants, and a general ledger integration.