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Lease Management and Accounting:
to In-source,
Outsource,
or Co-source?
© 2020 LeaseAccelerator Inc.
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Our Speakers
Rick Platzek
CMO,
NTrust Infotech
Scott Silver
Solutions Consultant
– Real Estate
Practice Lead,
LeaseAccelerator
Mike Lees
CMO,
LeaseAccelerator
Debbie McCalpin
Managing Director Lease
Administration,
Mohr Partners
Moderator
Agenda
• Introductions
• Leasing challenges
• Definition of in-source, outsource, and co-source models
• Evaluating your leasing process to determine the right model
• Value of automating the leasing lifecycle
• How leasing as a managed service works
Typical Problems with LeasingCosts, Inefficiency, and Inability to Leverage Leases Strategically
High
Costs
Employee Turnover
Employee Training
Onshore Model
Inaccurate, Incomplete, and
Inconsistent Data
Missed Options
Systems & Support
Non-competitive Sourcing
Inability to Leverage
Leases Strategically
Lack of Actionable Analytics
to Make Informed Decisions
Lack of True Cost of
Ownership Metrics
No Single Source of Record
Inability to View Leasing
Strategically / Lack of a
Global Lease Strategy
Operational
Inefficiencies
Business Units Hording Data
Different Standards Across
the Enterprise
Language Barriers
Vendors & Vendor Relations
Data in Multiple Systems &
Formats
Inaccurate, Incomplete, and
Inconsistent Data
A little History: Back Office Functions Viewed as a ContinuumThe Back Office has changed significantly over the last 30-40 years focusing on efficiency and cost reduction
Efficiency and Cost Reduction
In House Outsourcing / Co-Sourcing
Decentralized
Support service
functions exist
within each
business unit,
with minimum
consistency
across
business units
Centralized
Centralized
functional
departments provide
a standardized level
of service to
business units
Shared
Services
“Business within
the Business”
that provides a
menu of services
to business units
on a predefined
cost basis
Outsourcing
Use of a 3rd
Party to
undertake
specific tasks
or processes
usually with a
high level of
autonomy
Off-Shoring
Use of a 3rd Party
to undertake
specific tasks or
processes, in a
different country
with lower labor
costs
Swimlanes: Lease Abstraction Example – In-house
Work
Initiation
Document
QC Process
OCR & NLP
Engine
Abstraction
Phase
Review
Phase
Quality
Control
Dispatch
Client
Project
Manager
Process
Center
Work
Initiation
Document
QC Process
OCR & NLP
Engine
Abstraction
Phase
Review
Phase
Quality
Control
Dispatch
Client
Project
Manager
Process
Center
Internal Partner
Swimlanes: Lease Abstraction Example – Outsourced
Work
Initiation
Document
QC Process
OCR & NLP
Engine
Abstraction
Phase
Review
Phase
Quality
Control
Dispatch
Client
Project
Manager
Process
Center
Internal Partner
Swimlanes: Lease Abstraction Example – Co-sourced
Sourcing alternatives are then considered with decisions made as to which capabilities are candidates for outsourcing
No
Yes
Outsourcing Opportunities
Yes Yes Yes Yes
No No No No
No Yes
Insource, Outsource, BPO or Offshore
Outsource / BPO / Off Shore
Retain work in-house (in-source, if world-class)
Define
performance
requirements
Requires
specialized
knowledge?
Available
outside?
More
cost effective
outside?
Strategic? Variable
workload?
Can offload
peak?
Lease Lifecycle Services
✓ Lease Abstraction into
REmaap and customer
system
✓ Abstract from 40
different languages
✓ Update lease
amendments and
modifications
✓ Document Management
/Indexing/Bookmarking
✓ Rent Payment
Processing
✓ Invoicing of sublets
✓ Critical Date
Management
✓ Pay and Track Escrow
amounts
✓ Monthly Reconciliations
of Expenses vs. Escrows
✓ Annual CAM Recoveries
✓ Property, portfolio and fund
accounting
✓ AP and AR processing
✓ GL/Reporting/Accruals
✓ Variance reporting
✓ Bank reconciliations
✓ Income & Expense
Budgeting and Forecasting
✓ Management Reporting
✓ SSAE 18 Type II Audit
✓ SOC 2 Compliance
✓ ISO 27001 Security
Certification
✓ Guaranteed Accuracy of
100% on Dates & Financial
Amounts
✓ Measurement of over 50
KPIs across the Lease
Administration process
✓ Data Accuracy of over
99.5%
Financial ReportingLease Administration Process & QualityAbstraction
Managing leases effectively requires a lifecycle perspective
Global Lease Services: Delivering Outcomes
ENTERPRISE LEASE
ADMINISTRATION &
ACCOUNTING
Accounts Payable
Ap Reconciliation
Gl Journal Entries
Disclosure Reporting
Budgeting & Forecasting
Portfolio Optimization
Leasing Policy
Equipment Sourcing
Accounting Policy
Lease Data Abstraction
Contract Management
Inp
uts
Ou
tpu
ts
Real Estate Assets
Compliance & Governance Accurate Financial Reporting Roi & Target Free Cash Flow
Centralized Policy Management Tracking Of Portfolio Changes Lease Lifecycle Audit Trail
Rick Platzek,
CMO,
NTrust Infotech
Scott Silver,
Solutions Consultant
– Real Estate
Practice Lead,
LeaseAccelerator
Mike Lees,
CMO,
LeaseAccelerator
Debbie McCalpin,
Managing Director Lease
Administration,
Mohr Partners
Questions?
THE LEADER IN ENTERPRISE LEASE LIFECYCLE MANAGEMENT SOFTWARE
Thank you
LeaseAccelerator LeaseAccelerator @LeaseAccelerate LeaseAccelerator