Another year. Another deadline. If your company is privately-owned and uses leased equipment, this might be important to you.
Last year, public and private companies holding public debt had to move their leased property to their balance sheets by Dec. 15, 2018, thanks to a new lease accounting standard adopted by the Financial Accounting Standards Board nearly four years ago.
Now, privately-owned companies of all other types and holding leased property must do the same next month, the deadline being Dec. 15, 2019.
The Financial Accounting Standards Board (FASB) in 2015 voted to accept the new accounting standard requiring companies bearing leased property with lease terms of more than 12 months to recognize assets and liabilities arising from all their leases.
What does this mean for your business?
If You’re Leasing, It May Matter for Your Organization
Well, no matter how small your company, if you are leasing any property whatsoever — be that office technology like copiers and printers, real estate or even vehicles belonging to your fleet — you may be required to reclassify your leased property.
With the holidays approaching and all the many cares of running a business, especially for small businesses, compliance with this change may very well be challenging. More daunting than that though can be the actual identification of affected properties. That just takes time and effort, resources many organizations would rather put toward increasing revenue.
Don’t Worry: There’s an … er … cloud-based tool for that!
The good news is some technology companies such as RK Black and its technology partner Ricoh have software tools to help organizations through the process of discovery and identification of affected properties, saving you trouble.
Built into the cloud-based, SaaS platform Ricoh Lease Administration Services is a service that addresses the nuances of the new regulations while centralizing and automating lease information management.
The tool performs workflow analysis, lease compilation, data identification, systems integration, planning and report management and ongoing FASB compliance support, basically taking what would be an arduous operation and turning it into a walk in the park — so to speak.
We're Here to Help
If meeting the FASB deadline seems a daunting task to you and you would like to relieve yourself or your company of that pressure, contact us by either calling us at 405-943-9800 or clicking on the red button below. Be sure to tell us you want to know more about the Ricoh Lease Administration Services tool and we’ll be sure to contact you.
About R.K. Black, Inc.
R.K. Black, Inc. is an Oklahoma City-based, family-owned leading provider of office technology solutions to small and medium-sized businesses in Oklahoma and Kansas. We specialize in everything business technology from copier, fax, printer and scanner technology to document management, onsite paper shredding services, VoIP phone systems and managed IT support to video surveillance solutions.
If you want to learn more about us, feel free to explore the website, read our other blogs or click the button below to be contacted by one of our reps and tell you! Also, be sure to keep watching our social media channels on Facebook and Twitter for more business tips from our blog.