While the new lease accounting standards have been around for several years, results from the 2021 Global Leasing Survey - Opportunities to Optimize conducted by Ernst & Young Global Limited (EY) and LeaseAccelerator make it clear that there are opportunities for improving the lease accounting and administration processes, technology and people for those organizations who have implemented the new standards as well as those that are preparing to do so. For example:
- Over half of respondents (51%) said they have more than 250 leases.
- The same percentage (51%) said their lease accounting is not fully integrated with ERP systems.
- More than half of respondents (58%) said they don’t have a centralized lease vs. buy process, and 42% of them said that they return fewer than 70% of their leases on time.
These gaps and others drive audit challenges and make it more difficult for organizations to realize the cash flow benefits and return on investment (ROI) they expected from their investments in lease administration and accounting systems and processes.
The results from the survey have been compiled into a report containing insights and recommendations for organizations at all stages of adoption to make lease accounting more efficient and deliver increased ROI and long-term compliance.
Download the report to get insights from US public, private and international companies, including:
- Ongoing audit challenges
- Technology adoption vs. manual processes
- How they are managing cash flow and ROI
- What resources they’re using to get and stay compliant