{"id":5867,"date":"2021-06-25T14:28:24","date_gmt":"2021-06-25T18:28:24","guid":{"rendered":"https:\/\/visuallease.com\/?p=5867"},"modified":"2023-06-02T10:46:09","modified_gmt":"2023-06-02T14:46:09","slug":"the-benefits-and-business-impact-of-lease-optimization","status":"publish","type":"post","link":"https:\/\/visuallease.com\/the-benefits-and-business-impact-of-lease-optimization\/","title":{"rendered":"The benefits and business impact of lease optimization"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/visuallease.com\/the-benefits-and-business-impact-of-lease-optimization\/#What_is_lease_optimization\" >What is lease optimization?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/visuallease.com\/the-benefits-and-business-impact-of-lease-optimization\/#Identify_cost-saving_opportunities\" >Identify cost-saving opportunities<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/visuallease.com\/the-benefits-and-business-impact-of-lease-optimization\/#Real_customer_lease_optimization_examples\" >Real customer lease optimization examples<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/visuallease.com\/the-benefits-and-business-impact-of-lease-optimization\/#Capture_modifications_and_adjustments_that_impact_lease_accounting_compliance\" >Capture modifications and adjustments that impact lease accounting compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/visuallease.com\/the-benefits-and-business-impact-of-lease-optimization\/#Accommodate_business_needs_with_agility\" >Accommodate business needs with agility<\/a><\/li><\/ul><\/nav><\/div>\n<p><img decoding=\"async\" class=\" wp-image-5868 aligncenter\" src=\"https:\/\/visuallease.com\/wp-content\/uploads\/2021\/06\/MicrosoftTeams-image-111-300x91.jpg\" alt=\"\" width=\"993\" height=\"301\" srcset=\"https:\/\/visuallease.com\/wp-content\/uploads\/2021\/06\/MicrosoftTeams-image-111-300x91.jpg 300w, https:\/\/visuallease.com\/wp-content\/uploads\/2021\/06\/MicrosoftTeams-image-111-1024x309.jpg 1024w, https:\/\/visuallease.com\/wp-content\/uploads\/2021\/06\/MicrosoftTeams-image-111-768x232.jpg 768w, https:\/\/visuallease.com\/wp-content\/uploads\/2021\/06\/MicrosoftTeams-image-111.jpg 1160w\" sizes=\"(max-width: 993px) 100vw, 993px\" \/><\/p>\n<p>There is power within your lease portfolio. Over the last year, public and private businesses have taken a closer look at their leases \u2013 and experienced the downstream benefits of lease optimization. Businesses who must comply with the new lease accounting standards (e.g., FASB ASC 842) are now examining their leases with a higher level of scrutiny than ever before. Additionally, over the last year, companies looked to their leases to reduce the financial impact of COVID-19. In return, these businesses have experienced operational benefits associated with lease optimization.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_lease_optimization\"><\/span>What is lease optimization?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Optimizing your lease portfolio means:<\/p>\n<ol>\n<li>Having a controlled inventory of all lease documentation that is updated to account for all changes and modifications.<\/li>\n<li>The ability to capture, monitor and act on all critical lease dates, including end of-term options.<\/li>\n<li>Ensuring changes in lease terms are reflected in payment schedules and lease accounting disclosure reports.<\/li>\n<li>Conducting regular audits of your leases and the underlying assets by taking stock of your portfolio and identifying gaps and opportunities.<\/li>\n<\/ol>\n<p>Lease optimization allows your business to uncover savings, streamline lease accounting compliance and accommodate pivotal business needs with agility.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Identify_cost-saving_opportunities\"><\/span>Identify cost-saving opportunities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Over the last year, <a href=\"https:\/\/visuallease.com\/business-services\/\">businesses<\/a> looking to cut excess business expenses were increasingly mindful of their leases, given leases are the second largest business expense besides payroll. Lease optimization helps organizations identify areas of their leases where they are overspending \u2013 and save money through visibility into that data.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Real_customer_lease_optimization_examples\"><\/span>Real customer lease optimization examples<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Here are some examples of how Visual Lease has helped hundreds of customers save money through lease optimization. Before partnering with us:<\/p>\n<ul>\n<li>A large manufacturing company lost $105k because they did not realize that their lessor was continuing to bill expenses for surrendered property.<\/li>\n<li>One of the largest insurance companies in the US lost $185k because they didn\u2019t realize their landlord needed to offset operating expense increases against tax decreases.<\/li>\n<li>A national bank lost $500k because the tenant forgot to request reimbursement for tenant improvements from the landlord.<\/li>\n<li>A large tech company lost $210k because the tenant was not aware that tax abatements were not being added back to the base tax amount.<\/li>\n<\/ul>\n<p>These are examples that with the right information, perspective and tools in hand, lease optimization can be leveraged to materially improve business processes and generate savings in a previously undermanaged area of an organization.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Capture_modifications_and_adjustments_that_impact_lease_accounting_compliance\"><\/span>Capture modifications and adjustments that impact lease accounting compliance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Leases change \u2013 and adjustments need to be tracked and evaluated under the new lease accounting standards (ASC 842, IFRS 16, GASB 87).<\/p>\n<p>Determining whether a modification has taken place can be operationally challenging, particularly for companies with large lease portfolios or for organizations that do not have the systems and processes in place to properly handle and account for these events. This analysis is complicated and will most likely require a dedicated team and technology to ensure attention to detail.<\/p>\n<p>That said, this is THE perfect time for you to take the extra steps towards optimizing your lease portfolio.<\/p>\n<p>You need to feel confident throughout every stage of the lease accounting compliance journey:<\/p>\n<ul>\n<li>Day 1 \u2013 Compliance (centralizing leases and producing accurate reports)<\/li>\n<li>Day 2 &#8211; Sustainable Auditability (implementing processes and controls)<\/li>\n<li>Day 3 \u2013 Optimization (revisiting and bridging gaps)<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Accommodate_business_needs_with_agility\"><\/span>Accommodate business needs with agility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Another positive of lease optimization is that it enables your business to pivot and identify emerging lease needs as your organization grows \u2013 or vice versa. Having the ability to access your leases in one centralized location \u2013 and report on your portfolio in any way helps you to identify the most effective way to scale your lease portfolio to meet your needs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There is power within your lease portfolio. Over the last year, public and private businesses have taken a closer look at their leases \u2013 and experienced the downstream benefits of&#8230;<\/p>\n","protected":false},"author":2,"featured_media":5868,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[170,109],"tags":[185,209,186,215,189,188,79],"company_size":[],"company_portfolio_size":[],"company_industry":[],"case_study_topic":[],"class_list":["post-5867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lease-accounting","category-lease-administration","tag-asc-842","tag-covid-19","tag-ifrs-16","tag-lease-accounting","tag-private-companies","tag-public-companies","tag-real-estate"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/posts\/5867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/comments?post=5867"}],"version-history":[{"count":0,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/posts\/5867\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/media\/5868"}],"wp:attachment":[{"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/media?parent=5867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/categories?post=5867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/tags?post=5867"},{"taxonomy":"company_size","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/company_size?post=5867"},{"taxonomy":"company_portfolio_size","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/company_portfolio_size?post=5867"},{"taxonomy":"company_industry","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/company_industry?post=5867"},{"taxonomy":"case_study_topic","embeddable":true,"href":"https:\/\/visuallease.com\/wp-json\/wp\/v2\/case_study_topic?post=5867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}