Competition Intensifies Between The Major IWMS Vendors As They Battle To Win Lease Accounting Software Deals Ahead Of The 2019 Deadline
There are now just over 16 months left until public companies holding leases must comply with the new lease accounting standards that come into effect in 2019. These new standards have been developed by the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), which mandate that all leases (property and equipment) must be brought onto balance sheets by capitalizing the leased assets. Most organizations are now assessing how the new rules apply to them and how to gather lease data scattered across various spreadsheets, IT systems and desk drawers. Notably for IWMS vendors and lease management software specialists, almost 43% of firms plan to install new software to manage leases according to CBRE and PWC’s 2017 survey with 600 finance and real estate professionals.
With new software implementations on the horizon, competition is intensifying between the major IWMS vendors who are rapidly increasing their capabilities for lease management and accounting. Witness IWMS provider Accruent acquiring Lucernex on August 9, 2017, which specializes in lease management software for the retail sector and recorded 90% revenue growth in 2016. Qube Global Software has partnered with intelligent information extraction provider LEVERTRON, to leverage its software for reading and abstracting data from lease documents and auto-uploading relevant data. Cushman & Wakefield, which deploys IWMS platforms on behalf of vendors, has recently launched its own lease accounting calculator that enables users to input key terms of a lease to calculate the financial impacts of the new lease accounting standards.
With some lease management deals already being closed, IWMS vendors that have not yet developed the functionality for capitalizing leases or had their calculations audited by a third-party accounting firm risk missing out on the wave of upcoming deals.
For more insights into the lease management capabilities of IWMS vendors, including Accruent, ARCHIBUS, Axxerion, FM:Systems, MCS Solutions, Planon, Qube Global Software and Trimble, read our latest software benchmark report Green Quadrant® Integrated Workplace Management Systems.