How to select the correct leasing software solution for your retail business
Leasing software has revolutionised the way retail businesses operate. It streamlines the entire leasing process, from lease creation to tenant management, rent collection, and maintenance tracking. However, with every technological advancement comes a new set of challenges. The leasing software industry is no exception.
If you’re struggling to overcome common leasing software challenges in the retail industry, you’re not alone. Many businesses face the same issues, which can impede their growth and profitability and impact on their ability to remain in compliance. Leasing software has countless benefits, however despite these, the challenges can make it difficult for businesses to fully capitalise on the technology and achieve their leasing goals.
Whether you’re a small retail business owner or a large enterprise, this article will provide you with valuable insights into how you can ensure the leasing software vendor you choose is the perfect fit to maximise your business’s potential.
Leasing software features you need for your retail business
When choosing leasing software for your retail business in Australia, it’s crucial to consider the International Financial Reporting Standard 16 (IFRS16) compliance. As you’re most likely aware, IFRS16 is a global accounting standard that came into effect in 2019, requiring companies to account for all leases on their balance sheet.
This change has significant implications for retailers and the software they utilise to achieve tasks successfully. The standard has impacted many areas of a retailer’s business, including financial reporting, lease management, and compliance requirements, and many retailers are left in the lurch scrambling to secure a vendor that has the functionality they require.
If you’re looking to upgrade your software or making the switch from manual processes, it’s crucial to find the right features and functions to ensure compliance with IFRS16 regulations.
Fortunately, we’ve got you covered with our top suggested features to look for in leasing software designed specifically for retail businesses in Australia. Read on to learn how to select the correct leasing software solution for your business.
- Lease Accounting: The first, and arguably most crucial component of the leasing software you select for your business is a vendor that offers robust lease accounting functionality. This feature enables you to accurately track and report on lease liabilities and assets and is a key player in ensuring you’re complying with financial reporting requirements, including IFRS16, and avoiding penalties, legal and financial risks associated with non-compliance and ensuring that your business remains on a solid footing.
- Lease Administration: As well as Lease Accounting, comprehensive Lease Administration is another important player in your retail leasing strategy. Lease Administration allows you to manage leases throughout their entire lifecycle and does it effectively. Some common components of this feature include lease tracking, payment management, and compliance monitoring, among other functions.
- Lease Abstraction: Choose leasing software that offers lease abstraction capabilities, enabling you to extract key lease data and simplify lease management processes. This feature can include data extraction, lease term tracking, and lease agreement analysis. By utilising AI, you’ll decrease time spent by finance and operations teams having to execute tedious manual lease abstractions as well as significantly reduce any human error be leveraging technology that does all the heavy lifting (and double checking) for you.
- Transaction Management: Look for leasing software that provides robust transaction management capabilities, enabling you to manage lease negotiations, renewals, and terminations effectively. This feature can include document management, workflow automation, and communication tools, among others.
By selecting leasing software that offers these features, Australian retailers can ensure compliance with IFRS16 and optimise their lease management processes effectively.
Ready to take the next step in your retail journey to ensure total leasing compliance, save on costs and increase efficiency for your financial teams? Get in touch with MRI Software today and receive a free demo of our accurate, easy to use, auditable lease accounting software.
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