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