A lot about our lives has changed in the past couple of years. Almost every way of life and business has been affected by the continuing pandemic. Even an industry as specific as lease accounting is still going through changes, forcing companies to adapt. It looks like 2022 will be no different, as new lease accounting standards come into play. One such example is private companies will be faced with a new standard titled “ASC 842”. This new rule began taking effect just days ago, on December 15th. Going into the new year companies will have a lot on their plate, whether they have one lease or hundreds. And adapting to this new standard will be time-consuming and complex, especially coupled with the many pressures of a continuing pandemic. Assistance will be greatly beneficial for any company trying to stay with the times accurately and efficiently.
Change is Coming
In light of continued unprecedented circumstances, many companies are reevaluating their lease portfolios. Doing so to ensure that these costly agreements still make sense, financially. Many are making modifications to existing leases or considering different terms for new ones. Any business that deals with leases will want to still provide the most affordable and easiest options to their customers, but the ever-changing landscape we’re in makes that difficult. Revisiting the terms of their leases to make modifications, to accommodate changing work conditions and circumstances, can lead to wasted money if not handled properly. While vehicle leases are a part of this, property leases are obviously the bigger risk to manage. Demand for commercial real estate is expected to increase in 2022. Businesses will continue to reassess their real estate portfolios in response to the ripple effects of the pandemic.
As reassessments are conducted these changes need to be tracked and accounted for. This is imperative to maintain compliance with the new lease accounting standards. On November 10th, the Financial Account Standards Board(FASB) decided not to issue a 3rd delay to ASC 842, hence its recent and sudden implementation right at the end of the year. As of July 2021, it was reported that 75% of private companies surveyed were not yet compliant with the standard, as they were expecting another delay. Now, the clock is ticking and many companies will be lagging behind as they enter 2022. This will put a drain on internal resources and lead many organizations to consider outsourcing the process. Which is a perfect opportunity for MyOutDesk to step in and offer experienced virtual assistants to aid with the growing pains.
Work Smart, Not Hard
Historically, many companies have relied on manual processes for managing their financial endeavors, including lease operations. However, as they transition to these new standards they will be realizing how beneficial technology can be to optimizing these processes. Utilizing dedicated software would greatly ease the adoption of new regulatory burdens. Automation is the name of the game in so many industries these days, so the temptation to turn there for complex and lengthy operations like this is strong. But the hesitation to trust technology with your finances is also a very real emotion, and rightfully so. It’s important to keep in mind though, that companies who adopt these new technologies will be able to streamline much of their processes going into 2022, and thus free up more time and resources to focus on other important aspects of the organization. After all, time is money. No one wants to be left behind with less of both simply because they were afraid to embrace change.
The Missing Piece of the Puzzle
Times like these are perfect opportunities for companies to come to us for some help. Often a business will turn to us to provide them with a virtual assistant for a specific project they need affordable, extra hands with. Once that pressing matter is resolved, the experience is often so worthwhile that they keep their virtual assistant as a semi-permanent fixture of their team. Because our virtual assistants are so thoroughly interviewed and tested, we have a very organized pool of educated and reliable professionals across a variety of experiences. Including the real estate industry, accounting, law, marketing, and of course general administration. So if your company is going through a busy transition period maybe it’s time to call in for reinforcements. Don’t stress your team out by stretching them thin. Not when you can get a remote worker with the same level of experience and reliability. And at up to 70% less cost! They can come in and learn your processes while helping your team learn new technology and bring everything up to code. It’s a win/win situation, and your business financials can’t afford to lose.
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