The introduction of the AASB 16 Leases Accounting Standard in FY2020 has had a huge impact on the financial reporting processes of thousands of organisations like yours around the country, and indeed, the world with IFRS16.
This new AASB (Australian Accounting Standards Board) reporting standard requires your company to reclassify operating leases from the profit and loss to the balance sheet. Unfortunately, this has created an additional layer of work for you and your financial team to complete each year.
What makes this worse is most organisations are working with broken, dated Excel spreadsheets to collate and prepare data. This creates more problems, further increasing workloads and turning Statutory Reporting into a significant burden for your company.
That’s why many businesses use their auditing firm to compile this report, leaving them to review their data quickly before submission.
However, this is an expensive process—and an unnecessary one, too.
That’s because, with the right internal systems, you can proactively document your leasing data yourself. Not only will you meet your compliance obligations, but you will also increase your team’s knowledge base, therefore enhancing your ability to make better business decisions and drive your company forward.
Curious? Keep reading to find out how this is possible.
3 advantages of proactively collecting your leasing data
We see so many companies nowadays simply trying to churn their AASB 16 Leases Accounting Standard process out as fast as possible just to meet compliance, before moving on and forgetting about this data until the next reporting period.
Unfortunately, they are unaware of the benefits of collecting this data can bring their business simply by using the right tools and processes.
These business benefits include:
1. Achieving Compliance
Of course, the first advantage of proactively collecting your leasing data is to meet your AASB 16 Reporting obligations.
By automating this process, your leasing data will be readily available allowing you to easily meet your AASB 16 requirements.
This will save you countless hours, as well as precious money and resources typically spent on compiling this report.
2. Better decision-making
Having your leasing data at your fingertips allows you to make better business decisions.
Remember that all the data within your business is interconnected. That means that changes to your leasing data can directly affect other departments such as Sales or HR. So, having the ability to easily access all the data within your business and understand the connections and impact that each data set has on another is highly advantageous to the planning and growth of your company.
This can also help to fast-track your Budgeting and Forecasting process as well.
3. Cohesive team knowledge
Automating your data can also enable your team to compile other reports and validate information fast and efficiently.
For example, if you were a retailer with 200 stores, you may want to validate your rental payments each month. If you’ve got an automatic model already containing your leasing information, this makes validating a breeze. It eliminates the need to have to locate your leasing data across multiple spreadsheets every time you need it.
You can also easily automate other processes as well, such as reporting monthly turnover to landlords.
How can you proactively collect your leasing data?
Through our consultation service with you and your business, our team at Minerva can configure an effective system that automatically collects your leasing data before performing all required calculations.
This provides you with the output you need to meet AASB 16 compliance AND make better business decisions.
This also makes your leasing data readily available year-round. This means you no longer need to gather the data once for your AASB 16 Report, and then again to put together your company budget. All data is stored within a centralised and secure database whenever you need it.
Standard data solutions aren’t enough
When some businesses want to be more proactive with their data, they typically reach for a standard data silo solution. However, this does not organise your data and only adds to your already complex data ecosystem.
At Minerva, our automated data collection and processing models and systems can be configured to meet your unique business requirements. By ensuring data sets are integrated, you can begin producing insights and reports that benefit your business.
Let Minerva turn your AASB 16 reporting into a proactive business process
At Minerva, we work with you and your team to find the best solution to replace your outdated data systems and provide you with the customised tools and training you need to successfully integrate it into your business.
We understand your compliance requirements, and we can use technology to configure a data model that fits your business and automates the data collection process. Through this, we provide you with a single source of truth that allows you to see your data right across your business and connect that information with your BI, planning and reporting infrastructure.
Through key partnerships with market-leading software providers, Minerva makes digital transformation simple and more effective for your organisation, based on your unique needs.
If you’d like to learn more, contact us today on 1800 646 378 or email info@minerva.com.au.
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