If you work in the healthcare industry, you know how vital lease management is. Healthcare organisations must accurately account for leases to ensure compliance with financial reporting standards and efficiently manage lease terms.
Healthcare facilities have numerous leases for equipment, properties, vehicles, and infrastructure; manually keeping track of them is almost impossible. Therefore, availing of the facilities of a lease accounting software that is designed to help healthcare organisations manage and account for their leases effectively is crucial. If you are wondering how this tool helps simplify lease accounting, read the article below:
- It Aids in Financial Compliance:
With regulations like ASC 842 and IFRS 16, healthcare organisations must accurately account for leases to ensure compliance with financial reporting standards.
ASC 842 requires healthcare organisations to state their lease assets and liabilities, which have a tenure of more than 12 months on the balance sheet, and the IFRS 16 aims to bring transparency to lease liabilities in the company’s balance sheet. Accounting for these financial compliances is difficult if you don’t have lease accounting software.
- Helps in Efficient Asset Management:
In the healthcare industry, the lessor is also the lessee. You will help multiple assets get leased out, and at the same time, you will have numerous assets that you have taken on lease. A lease management software, such as FMIS, is the central repository for all lease-related information, including equipment and vehicles you have given on rent or rented from others. The system also automates routine functions, notifying you when a lease is about to end and simplifying your work.
- It Enhances Operational Efficiency:
The healthcare industry is an equipment-intensive sector, and manually checking the availability of each tool or equipment is difficult. A lease management software efficiently records the lease tenure and cost, optimises the allocation of resources, and relieves the management’s burden, which overall leads to improved operational efficiency. This tool also helps track rent payments and maintenance schedules, ensuring essential tools are available when needed.
- It Saves Time:
If you struggle with time management, the automated calculation of lease-related metrics such as lease payments, lease liability, and lease expense available will help you save time. The challenges faced by the UK’s healthcare sector are manifold, and the shortage of staff and time is one of them. This software makes documentation of transactions and maintenance of audit trails straightforward for audit and regulatory purposes, saving the time of the personnel responsible for this task.
- Gain Power in Lease Negotiations:
If you can’t fully comprehend the terms and conditions of your lease, how will you be able to manage it? This tool gives you a detailed account of your current leases and terms readily available in one place, which is a vital tool to turn the tables in your favour when negotiating the lease renewal terms and conditions. This helps your business secure favourable lease terms and save money in the long run.
Adapting to the Ever-Evolving Healthcare Landscape:
A lease management system is your trusted companion in this ever-evolving healthcare landscape. With lease terms becoming more complex daily, having a robust system that can automate the process and notify you regarding lease renewal can help simplify your work.
A lease management software acts as a trusted advisor in the healthcare infrastructure. It helps proactively manage resources and allocation and seize growth opportunities. Therefore, you must avail yourself of the services of this software today to streamline your daily operations.
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