Even if you know it’s time for something new, replacing your lease accounting solution can feel like a daunting task, akin to re-implementing your data from scratch. If you are looking to switch, you’re likely considering new features but also want to ensure a smooth transition. You aren’t just seeking a new lease accounting solution, you’re seeking assurance of a successful implementation.
Fortunately, as companies have gained experience with the updated lease accounting standards, software solutions have evolved – some more than others. When looking to switch, make sure your new provider understands what drives successful implementations and can streamline your processes—from procurement to ongoing customer support.
Ask the right questions
The most crucial step in this process is knowing what questions to ask your prospective vendors. Begin by evaluating your current processes and gathering feedback from your daily users. What features or services would improve lease entry, reporting, and journal entry (JE) integration with your ERP? What were the lessons learned from the implementation of your original lease accounting solution?
The right questions will help you distinguish between a basic lease accounting solution and one that maximizes value and efficiency throughout your organization.
Sales process
For many of you, this isn’t your first time navigating demos and comparing solutions. You’re familiar with some of the solutions available, with price points and with essential features. To make sure you get a better fit with your solution this time around, go beyond typical procurement questions to focus on the vendor’s customer lifecycle.
- Can the vendor provide references from other happy customers? Other customers who have switched to them?
- Have they successfully helped other organizations remain compliant with lease accounting standards?
- How does their tool simplify accounting for real-life scenarios like missed lease changes that may not have been an issue at the initial transition but are for ongoing compliance?
Implementation process
Whether your previous implementation was a rushed data-gathering exercise, a well-planned process, or something in between – the thought of going through another implementation is intimidating. The good news is that now that all your leases are accounted for (pun intended) switching solutions should be easier. The caveat is that switching solutions requires careful planning. Ask these questions to assure yourself that your new prospective vendor has a plan:
- What assurances do they offer of implementation success and timeline?
- Can they articulate a plan for how your existing lease documents will be seamlessly migrated into their solution?
- Can the vendor provide references from other implementations involving your current solution?
- Can they connect you with an expert who has experience transitioning from your existing software?
- What assurances do they provide, such as reconciliation or completeness checks, to guarantee a successful migration?
- How do they ensure the accurate transfer of existing balances into the new solution?
Customer support and professional services
There are many reasons to consider switching lease accounting solutions – one is quality of customer support. If you’ve experienced challenges with customer support, particularly during critical reporting periods, you will be sure to inquire about support hours and customer satisfaction metrics. But if you are going to make the switch, you want more than just ticket resolution from customer support. You want a partner who understands your needs. Consider asking these questions as well:
- Does the vendor have a strong Net Promoter Score (NPS) for their customer support department?
- What additional professional services do they offer to address your lease accounting needs?
- Can they assist with accounting questions, lease management, renewals, and other related tasks?
- Do they provide support for technical accounting scenarios, such as migrations and divestitures?
Product enhancements and integrations
Many organizations who are looking to switch lease accounting solutions have found that their current solution is missing key features or has not kept up with their needs. Ask questions to understand the vendor’s commitment to maintaining and enhancing the quality of their product. You may want to better understand the following:
- What evidence can the vendor provide of their continued investment in their tool?
- Is there a process for submitting product enhancement requests?
- How does the vendor prioritize and implement software enhancements?
- Which ERP systems does their solution integrate with?
Summary
In your initial search for a lease accounting solution, getting compliant was paramount. And compliance isn’t a one-and-done. If your current solution isn’t right for supporting ongoing compliance, it’s time to switch. The “Day 2” phase of lease accounting requires a more strategic approach to solution procurement. By asking the right questions, you can ensure you select a partner that will streamline your processes and maximize your investment.
