easeAccelerator is the industry s first software application developed specifically for Enterprise Lease Accounting. Fortune 500 companies lease much of the real estate and equipment they use to run their business. Real estate leases might be for factories, warehouses, call centers, research labs, retail stores or corporate offices. Equipment might include office equipment (furniture, photocopiers), industrial equipment (forklifts, machinery), transportation equipment (trucks, planes) or IT equipment (laptops, servers).
We believe that leasing is one of the most poorly managed financial process in Fortune 500 companies. The average Fortune 500 company has between $100M and $1B of leases, which represent between 1000 and 10,000 assets. No other process with such high dollar values has so little governance, process and control. While corporate real estate leases have been increasingly centralized in recent years, few companies have assigned ownership to their IT, fleet and equipment leases. At most companies it would take weeks, if not months, to simply get a listing of all the active leases around the world.
But this is all about to change. Recently, a new set of accounting standards have been introduced by the US (FASB) and International (IFRS) accounting boards specifically for leasing. With these new standards, leases move from an often overlooked footnote in a company s annual report to front and center on the balance sheet. These new standards are going to require public companies to get their equipment leases in order because they will need more detail.