Sharing insights on how to navigate ongoing lease accounting challenges, EY and LeaseAccelerator published their 2022 Global Lease Accounting Report which surveyed US private and public organizations on how they are managing their leasing process, how they are addressing the compliance challenges across ASC 842 and IFRS 16, and what tools and processes they’re using to help drive long-term compliance and ROI.

The 2022 survey findings indicate challenges such as lease accounting integration and governance continuing to lag other finance functions, and new challenges for US public companies stemming from team lease accounting fatigue and employee turnover. However, these challenges also present an opportunity, as many US private companies indicated they are actively applying key lessons from US public companies to optimize their current leasing processes. Key findings include:

• 20% of US private company respondents are starting implementation, and 32% have already implemented by adopting early, up 8x from last year.
• 40% of respondents say that they return less than 70% of their leases on time.
• Although 37% of respondents have more than 250 leases, most aren’t centralizing decision-making and automating processes.
• Nearly half (48%) of respondents said their lease accounting is not fully integrated with ERP systems, creating potential missed opportunities for business optimization.

“The global economic environment has continued to be challenging. To manage the risk and uncertainty that goes with the growing challenges, taking control of lease portfolios and using automation to “do more with less” have never been more essential,” said Todd Fredrick, CEO at LeaseAccelerator.

Full Report: https://explore.leaseaccelerator.com/resources/webinars/optimize-lease-accounting-key-actions-from-survey-results/