The trouble with spreadsheets…
The challenges of Lease Administration & IFRS 16 data preparation in non-specialised software.
Difficulty in maintaining lease data for the purposes of lease administration as well as for IFRS 16.
The spreadsheet, love it or hate it, is one of the most prolific, useful tools for businesses the world over. While a spreadsheet can be extremely versatile, and has a multitude of functions, lease administration and holding IFRS 16 data are not ones it does well – and there are very valid reasons for this.
Many companies are grappling with the realisation that a spreadsheet is not enough to manage their lease information effectively but are reluctant to move out of their comfort zone. The reality is that although a spreadsheet can hold portfolio information, the more it is required to track, the harder it becomes to maintain. Lease Administration and IFRS 16require a great deal more information than a spreadsheet is designed to handle efficiently, potentially leading to bloated files, split datasets and increasing risk of data loss.
Spreadsheets are not specialised for day-to-day lease administration processes let alone the complexities of IFRS 16. Being tricky to adapt as well as particularly susceptible to human error makes it a less than an ideal choice.
Other features necessary for lease administration and IFRS 16 that single or multiple spreadsheets cannot provide, include scalability, customisation, critical date alerts, configurable reporting capabilities, audit trails, and controlled multi-user access.
Be Proactive instead of Reactive – Implement a robust lease administration system
As mentioned in Topic 2 of the Challenger Series, a lease administration system is an investment companies need to make for the future. So much of what we do daily is embedded in technology systems, why should your property portfolio be any different?
A dedicated lease administration system provides a centralised database which is easily accessible and fully tracked, and better still, generates a critical date report with reminders and alerts sent to key decision-makers for the portfolio. A lease administration system will also allow for scalability, quality control, customisation, reporting, audit trails, and holding the property lease data needed for IFRS 16
At CBRE we have assisted many global companies in choosing and implementing the lease administration system that best suits their needs. Our dedicated, specialized team then manage and maintain the data on an ongoing basis – freeing up our client’s resources to be refocused on other areas of the business.