Due to the new lease standards, there is a lot of chance of interpretations and space for judgement calls which can be open to human errors. This makes compliances harder than before, and lease audits can land you in many problems. You need to be well researched and well-read about the leasing accounting standards not to keep things open to interpretation. You can also use updated lease accounting software to help in the process, along with lease accountants.  

According to theForbes news report, more than 39% of companies use decentralized data systems to store and manage their lease data. This means that during compliance and accounting work, they need to gather information and data from multiple locations and stakeholders, which can be available in various forms like PDFs, Excel sheets, docs and even physical paperwork. Finetuning these, getting a hold of them on time and getting them organized into a centralized system at the year-end when deadlines are hanging over your head can be a crushing task for the team.  

Spreadsheets might be your accountant's best friend, but most companies still use spreadsheets to do all their lease accounting work. Survey saysthat companies have come to realise that they spend 25% more time on lease accounting due to their extensive use of spreadsheets. The new standards are so complex that a simple spreadsheet data collection can not be a long-term solution to this complication. You need to make a major shift to a new age lease accounting software and integrate it into your system to streamline the process and speed it up.  

All real estate business owners are aware that non-compliance can lead to penalties and fines, but these are the two most basic side effects. There is much more to think about, as non-compliance can lead to bad audit reports, additional audit fees, and investors and shareholders pulling out of your company due to a lack of credibility in business standards. The effects of these can grill you for a long time if you do not take a closer look at its implications. 

If you are a real estate owner, you are sure to have many leases that you need to look into; if you start the data collection and accounting process before the deadlines, then it is sure to become a nightmare. Not checking data for authenticity and not categorizing the leases can all be fatal; you need to start way ahead of time to avoid this.  

You will set yourself up for failure if you do not have a long-term plan for your compliance work. It is not a one-time thing; it recurs every year, so you need to have a basic structure for your lease accounting process. Get the right tools, software, and expert help in place before you start out on this journey to avoid losing sleep over compliance work.  

Even if property managers and accountants understand the need for the latest tools and lease accounting software, your strategy and leadership might not agree, and that can be a big cause of concern. You need to reason this out with them that almost 90% of spreadsheets have errors, and that can be a cause for serious non-compliance; you can also make them understand that a new age software will help you stay updated with standards in the long term.  

If you are facing any of the problems above mentioned then you are sure to go down the road of non-compliance and that is the worst nightmare of all. That will shake up your business, affect your financial health and cash flow and hamper your business image.  

When you outsource lease abstraction work to outside partners you save a lot of time for your in-house staff. We can use this staff and get them reassigned to important front office work that can help scale your business. This is probably one of the biggest reasons why in the UK more than 48% of companies have outsourced its work to outside firms.  

Outsourced lease abstraction firms will also customize every document based on client demands and help better your credibility. These custom documents are simplified and easier to comprehend and helps you draw faster data based conclusions. 

ERPs come with a range of varying features that differ based on industries. Therefore, you should select an ERP that is designed for the real estate industry. 

In addition, go for a tool that aligns with your real estate sector. For example, construction businesses will need an ERP that lets them plan and manage projects. 

On the other hand, agencies in commercial real estate will have different needs. You may want a solution that helps you manage all your properties from a single interface. 

Therefore, consider your business and operations to choose the right ERP. 

Did you know that 50% of ERP implementations fail the first time around? Even after endless meetings, communicating with multiple departments, and complying with deadlines, 29% of enterprise real estate implementations become unsuccessful in the end. That’s mainly because companies repeat certain mistakes during the process.   

And if you're looking for an ERP solution for your business, you may have to consider multiple things and avoid the mistakes usually made. We’ve covered a list of seven common ERP mistakes and ways to avoid them to help you ease your process here.   

Around 50% of the companies are upgrading to ERP systems soon. And if you're planning to upgrade and implement an enterprise resource planning system too, here are the top common mistakes to avoid during the process for a successful implementation. Avoiding these mistakes can optimize your process and benefit your business. 

62.7% go with cloud-based ERP solutions rather than on-premise ERP. Sure, in a world where technology is dominating and easing the business processes, going with a cloud-based ERP solution can seem to be the best bet. Of course, cloud solutions are gaining popularity due to the range of features it offers. 

But it's essential to conduct thorough market research, understand what's best for your business, while keeping the budget in mind. Do not mistake going for a cloud-based solution and changing your business processes for it. You should always get a software solution that works well with your business processes and not the other way round.  

Using more than one software to meet your business requirements is a waste of valuable resources. For starters, employees have to engage in duplication of data. Most tools work with the same information but require their own database. 

Additionally, entering the same data in different software makes it prone to human error. This can lead to poor client management and a decrease in revenue. A Gartner survey found that poor data quality leads to an average loss of $15 million every year.  

You can avoid this by outsourcing software integrations. Service providers combine multiple software into a single platform that is suitable for your business. They can also add any additional features that aren't available in off-shelf tools. Apart from the cost benefits, software integrations also improve data flow and increase employee productivity. 

Real estate technology has been transforming the industry, especially by improving work efficiencies. Rapid digital innovation has presented endless choices to companies looking to automate their processes. From handling tenants to managing payments, real estate ERP provides solutions to every problem. 

To make the most out of the various ERP software, it is important that they talk to each other. Apart from the improved efficiency and work organization, here are a few more benefits of integrating various real estate ERP software.  

Most companies use ERP for accounting, inventory and distribution, and CRM. While ERP automates internal processes, it also benefits the company as a whole. It can influence employees, investors, and even customers. ERP systems that have integrated CRM make customer management easier. The processes are faster, accurate, and efficient, building the brand image of the company. This attracts both customers as well as investors.  

By using data from ERP, you can also get insights into new business opportunities and increase your customer base. By making optimal use of the system, every member of the business is benefitted.