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The Lean Rent Playbook: How to Avoid Hidden Occupancy Costs
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5. Excessive compliance
audit costs
With ASC 842 in effect, public and private companies must
hire external accounting firms to audit their lease accounting
calculations to ensure they are compliant with the new
standard. Each of these audits costs thousands of dollars. By
diligently following the FASB's guidelines, automating their
accounting calculations, and posting entries in the General
Ledger, you can reduce the time it takes auditors to audit
your organization's lease accounting calculations.
Estimated cost: $25,000+ in unnecessary audit costs
The solution: Tango brings you into full compliance
with ASC 842, organizing all your data and
automatically generating accounting schedules
for all of your leases. We'll automate the FASB's
calculations and post the required information to
the GL. This can reduce the annual time spent by
outside accountants (who cost hundreds of dollars
an hour) auditing lease accounting figures by as
much as 25%.
