NEW ORLEANS, LA (February 22, 2021) – The GASB 87 deadline may feel like a burden, but it can be used as a driver to better manage your lease portfolio.
GASB 87 Changes Everything. Seize the Moment.
The Governmental Accounting Standards Board Statement Number 87 (GASB 87) will dramatically change how public sector organizations record leases on their financial statements, and they will have to be in compliance by July 1.
While the intended purpose of the new standard – to better meet the needs of financial statement users – is a good one, complying with these complex changes places a heavy weight on already overburdened public sector organizations. Even with the extension, this summer’s deadline will be here before we know it. Organizations who seize the moment can turn the challenge into an opportunity to improve reporting and reduce costs.
A Drain on Resources or Flashpoint for Advancement?
Many public sector organizations have long prioritized modernizing their lease accounting technology but have not been able to do so because of competing business needs and limited resources. While complying with GASB 87 can be viewed as a strain on resources, it can also be leveraged as an opportunity to finally upgrade business and lease management systems.
Since the adoption of GASB 87 and implementation of lease management software go hand in hand, it only makes sense to consider software solutions that offer a broad range of functions. With the right software, the short-term pain associated with meeting the GASB 87 compliance deadline can be well worth it. When considering solutions, here are a few things to look for:
- Broad Functionality – Choose a software that provides a full spectrum of functionality beyond lease management, such as managing billing and invoicing, tenants, property and space, fixed revenue activity, and accounts receivable.
- Automated Processes – It should automatically collect data elements within each lease to track components that are subject to GASB 87 compliance and apply the established rules.
- Seamless Integration – Select an application with standard extensible API hub for those that want to integrate with their general ledger.
- Configurability – Make sure the system offers configurable landing pages, fields, reports and data sets.
- Proven Success – Look for a solution that’s been real-world tested and is backed by a team of experts and licensed CPAs.
- Secure – It should be hosted on a cloud region that is designed to meet the higher-level security and compliance needs for sensitive, dedicated, public sector workloads.
Of course, Civix offers software with all these features – and more. For decades, our company has been the leading provider of business and lease management software for public sector agencies, helping manage nearly all aspects of their real property and asset portfolios. Leveraging that platform, we developed our Public Sector Business and Revenue Manager (PBRM) as a complete solution for managing government business operations effectively and complying with the requirements of GASB. Our newly integrated GASB 87 module is a turn-key platform with built-in guidance that ensures compliance and manages an organization’s data for GASB 87 – and so much more.
Tim Walsh is President of Civix Transportation. He is a former public sector manager having worked for three cities and one county. He is a licensed pilot and volunteers his time flying scientists and environmentalists to observe coastal and offshore environments and to assess damage from natural disasters.