Leasing has become a viable and popular way of procuring assets such as IT equipment or a vehicle, rather than having to buy the asset outright, both in the private and public sectors.
However, when it comes to leasing assets, it is vital that you remain on top of the contractual information and the terms and conditions of each contract you have or your business could incur additional costs.
When does the asset need to be returned? Are you allowed to return the asset before the end of the contract if you no longer need it? Who in your business has use of the asset during the contract? All are important points to note, as returning an asset late or in fact early, and not in a good condition, can all lead to fines and if you have a lot of lease contracts on the go, it can be difficult to record these details.
Something that companies may not have considered is the software that is available to help them to monitor all the leasing contracts they have and track each asset for the duration of the contract. Knowing where each asset is at any one time, if it moves location and who has the asset can maximise the benefits of the lease.
At RAM, we recognise that tracking assets is only possible if you have reliable information on them, which is why we provide our customers with software that encompasses an asset reporting module and a lease module. With the asset reporting module allowing you to keep an asset register with lease descriptions, dates and asset codes and the leasing module enabling you to set up payment data and document all of the financial side of the lease contract.
Importantly, RAM’s lease asset accounting software offers comprehensive reporting and is IFRS compliant.