The client was doing their own lease accounting using third-party lease software but was contacting us regularly with questions ranging from how to use the software to more technical questions about lease accounting. We and the client both recognized that the costs to the client for the volume of ad-hoc queries were not sustainable, so we offered to manage the lease accounting for them.
Our lease managed services are designed to assist companies struggling with their lease accounting requirements. Companies often lack the expertise or bandwidth to perform this work correctly and in a timely manner in-house. We began by using the lease software to which they were subscribed; however, the client let their subscription expire, allowing us to move them to the software we utilize, which made our work even more efficient.
The client is now getting regular reporting and annual disclosure information delivered to them, rather than incurring the time and effort to perform this work internally. Additionally, the client has quick access to our technical subject matter expertise on leasing and other matters. The company has found that the lease reporting process is now more cost-effective, as they are paying a fixed fee for the service rather than the higher rates they were incurring each time they reached out for assistance.