The Role of a Business Software Consultant in Implementing Lease Software.

Introduction

Operational challenges are increasing in the ever-evolving work of vehicle and equipment leasing. Compliance and automation in areas such as accounting for new standards IFRS 16 and ASC842, calculating and updating depreciation schedules, income, and payments require lessors to adopt lease accounting software. Implementing these solutions and aligning them to the organization is a complex process. 

Business software consultants help lessors transition this journey as they are experts in the lease accounting software and understand best practices followed in the leasing industry. By engaging them, lessors have a path to a streamlined adoption of the new platform with the following objectives:

• Adoption of best practices
• Leveraging new technologies
• Maintaining the cost and time budget

The Role of a Business Software Consultant

1. Needs Assessment and Software Selection The first phase is for the consultant to work with key stakeholders to understand the current process, pain areas, and desired process. They ascertain business volumes, business processes, reporting, and compliance needs. The consultant can also help with the selection of the best fit. 

For instance, a lessor managing a large fleet of vehicles requires asset tracking and profitability capabilities and has a different focus than a lessor managing a portfolio of equipment leases with a high volume of billing and payments.

2. Configuration vs. Customization 

Your business software consultant guides you through adopting best practices in the lease accounting software to meet your objectives through configuration rather than customization.

For example, a fleet lessor requires scheduled and ad hoc maintenance tracking to analyze the profitability of assets at an individual level or by manufacturer, make, and model. The business software consultant will help configure the solution or add customizations where needed.

3. Data Migration and Integration 

Migrating the existing portfolio from the legacy systems to the new lease accounting software is a critical activity overseen by business software consultants. Migration includes lease contracts, open invoices, unapplied payments, and historical transactions.

Another key focus is building integrations between upstream and downstream systems with the lease accounting software. Upstream systems include origination and underwriting solutions. Downstream systems include tax management, general ledger, and reporting solutions. These integrations are drivers of automating processes across the lease lifecycle.

4. Training and Change Management 

Adopting the new solution is the primary purpose of a new lease accounting software for which training is critical. Training helps the initial adoption, and new users are on-boarded. 

Proper implementation requires lessors to change a number of their processes to align with the solution to minimize custom solutions. Business software consultants are the key drivers of these changes and work with key stakeholders to implement change management.

5. Post-Implementation Support

Going live is the first step of adoption, adopting the new solution by quickly troubleshooting and fine-tuning it to make it easier to use. The solution may need to be modified based on feedback.

Performance and technical impacts also need to be evaluated to ensure long-term value received by the lessor.

According to a report by Deloitte, companies that use external consultants for software implementation are 40% more likely to complete the project on time and within budget vs. those that manage the process in-house.

Impact of Technology on Lease Software Implementation

1. The Role of Automation 

Automating business processes helps lessors minimize errors and streamline reporting. Updating existing leases to recalculate payments and income occurs frequently for lessors. Errors in calculations or downstream accounting could impact credibility. Business software consultants guide lessors in automating processes.

Lessors may write leases with bills due on specific days of the month, for example, every 5, 10, and 15. Business software consultants can help lessors remove this limitation by billing on any day of the month.

2. Artificial Intelligence (AI) and Machine Learning

AI drives advanced analytics and can predict maintenance requirements or customers likely to default. Lessors can better manage large and complex portfolios with these tools as they provide better customer insights.

Business software consultants work with lessors to analyze and fine-tune large data sets, algorithms, and outputs to align with their needs.

3. Cloud-Based Solutions 

Physical and geographic access are no longer constraints with cloud-based solutions. Lessors with lower upfront costs and enhanced data security can access their information in real-time from any location.

Business software consultants work with lessors to migrate their on-premise solutions and data to the cloud. In addition to data migration, systems configuration for remote access with adequate security protocols.

Gartner reports that businesses that involve consultants in the software selection process are 35% more likely to choose a system that meets their long-term business needs.

Challenges in Implementing Lease Software

1. Budget Constraints Most small and medium-sized lessors find implementing a new lease accounting software expensive. Business software consultants provide the correct guidance to keep the implementation on time and within budget.

2. Resistance to Change Users may find their existing systems and processes inadequate but resist using the new system. Business software consultants create comprehensive training and help the lessor’s employees transition to the new solution. 

A survey by PwC found that 70% of organizations reported improved operational efficiency after implementing new lease accounting software with the help of a consultant.

Conclusion

Business software consultants bring industry expertise, a deep understanding of the solution, and knowledge of how other lessors have transitioned to guide the current implementation. They can play a role in business needs assessment, software selection, data migration, and integration with legacy systems.

Rapidly changing technologies like AI, automation, and cloud computing increase the need for business software consultants to leverage them in the best possible way to stay competitive and compliant. 

Citations

1. Deloitte. “The Value of External Consultants in Software Implementation Projects.” Deloitte Insights, 2022.
2. PwC. “The Business Impact of Software Consultants in Lease Accounting.” PwC Global Survey, 2023.