2A — September 2023 — M id A tlantic Real Estate Journal
www.marej.com
M id A tlantic Real Estate Journal
M id A tlantic R eal E state J ournal Publisher, Conference Producer ..............Linda Christman AVP, Conference Producer ...........................Lea Christman Editor/Graphic Artist ......................................Karen Vachon Contributing Columnists ..................Alexis Herr, P.E., ECS Mid-Atlantic, LLC; Akul Modi, Bregenzer Brothers Company Incorporated (BBCI); Lindsey Ottum, Withum; Bryan Seck, LeaseAccelerator Mid Atlantic R eal E state J ournal ~ Published Monthly Periodicals postage paid at Hingham, Massachusetts and additional mailing offices Postmaster send address change to: Mid Atlantic Real Estate Journal 117 HMS Halsted Dr., Hingham, MA 02043 USPS #22-358 | Vol. 35, Issue 9 Subscription rates: 1 year $99.00, 2 years $148.50, 3 years $247.50 & $4.00 single issue - plus postage REPORT AN ERROR IMMEDIATELY MARE Journal will not be responsible for more than one incorrect insertion Phone: 781-740-2900 www.marej.com
Bryan Seck
Real Estate and Lease Accounting – Consolidating for ROI
M
ost organizations are looking for ways to take cost out of their
business processes by reducing the number of software plat- forms they’re using. One com- mon opportunity for consolida- tion is leased asset accounting and lease administration. Real estate leases and equipment leases are often managed in separate systems, leading to inconsistent data, audit risks, and higher costs. Bringing the two solutions together can drive ROI and cost savings. Here is an introduction to that process and a few consider- ations to keep in mind. Real estate and lease ac- counting consolidation com- bines real estate administra- tion and the financial im- pacts and transactions of your property portfolio, combining accounting information from multiple properties/assets into an integrated solution. This helps by: • Allows real estate ad -
ministrators to enter finan - cial information and process invoices without having to make accounting-significant decisions. • Ensuring compliance with Generally Accepted Account - ing Principles (GAAP). • Providing transparency to stakeholders. • Enabling easy comparison of results across entities and property location/sites. • Improving efficiency in financial reporting for your real estate portfolio. Real estate lease adminis- tration automates many of the tasks associated with manag- ing your real estate portfolio. An integrated solution can also share accounting-significant information and transactions
continued on page 14A Most real estate leases have many different clauses and terms that are relevant for accounting. Some of the key that originate through real estate tasks and actions. This information can be used by the accounting team to generate journal entries, perform finan - cial consolidation, and report- ing. For example, real estate lease administration software can help you manage property costs and invoices, calculate important financial metrics (such as lease obligations and straight-line rent expense), generate reports on demand or on a schedule, get portfolio analytics, and provide dash- boards for easy visualization of results.
Firmly Rooted in the Law and in the Community We are well grounded in every facet of real estate law, from acquisition to construction. We are committed to serving the needs of our clients and our communities.
Contact: NEIL A. STEIN • nstein@kaplaw.com 910 Harvest Drive, Blue Bell, PA 19422-0765 • 610-941-2469 • kaplaw.com Other Offices: • Cherry Hill, NJ 856-675-1550 • Philadelphia, PA 215-567-3120 Kaplin Stewart Attorneys at Law
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