Departmental Lease Survey

Conducting a Departmental Lease Survey: A Guide to Capturing All Leases

ByLauren Covell

Last Updated on February 28, 2024 by Morgan Beard

Oftentimes, the accounting team is the last to know when their company enters into a new leasing arrangement. However, ensuring that every lease agreement is accurately captured by the accounting team is paramount. This task, however, can be daunting without a structured approach. A departmental lease survey can help identify potentially missing leases and consolidate lease information from various departments within an organization. Below, we delve into how to perform such a survey effectively, detailing what to include and best practices for distribution.

Crafting the Departmental Lease Survey

A Departmental Lease Survey typically refers to an internal survey conducted by your organization in order to assess leased properties. These lease surveys are often conducted to ensure that leased properties meet certain standards, comply with accounting regulations, and fulfill organizational needs of your business. Data collection through the survey can provide insights into fair market value and market conditions to inform proposed actions regarding lease agreements.

Key Components of the Lease Survey

A comprehensive departmental lease survey should solicit specific information to ensure all aspects of a lease are accurately captured. Essential elements include:

  • Lease Identification: Request basic details such as lessee name, lessor name, lease start and end dates, and asset description. This can help assess tenant rights and responsibilities.
  • Asset Location and Intended Use: Determine where the leased asset is located and how it’s being used within the department.
  • Contact Information: Collect details on who within the department manages the lease or has detailed knowledge about it.
  • Lease Documentation: Request all lease documentation, amendments, and rent data to facilitate your review.

Survey Design Tips

  • Clarity and Simplicity: Ensure the survey is easy to understand and straightforward to complete. Avoid accounting jargon and technical terms that might confuse respondents.
  • Structured Questions: Use a mix of multiple-choice, yes/no, and open-ended questions to gather comprehensive information while making the survey easy to analyze.
  • Digital Format: Utilize online survey tools to facilitate distribution, completion, and data compilation. Features like conditional logic can help streamline the survey based on previous answers.

Best Practices for Survey Distribution

The best practices for lease survey distribution involves ensuring that the survey responsibilities are distributed efficiently, securely, and to the appropriate stakeholder and covers key considerations such as security, communication, and stakeholder engagement. By following these guidelines, organizations can streamline the survey distribution process while upholding confidentiality and facilitating informed decision-making. Let’s delve into the strategies for efficiently disseminating lease survey results to maximize their impact and utility.

Targeted Communication

Identify and directly address the department heads or individuals responsible for managing leases within their departments. Personalized emails explaining the survey’s purpose, its importance for accurate financial reporting, and a request for their cooperation can increase engagement rates.

Clear Instructions and Deadlines

Provide clear instructions on how to complete the survey and emphasize the deadline. Setting a reasonable but firm deadline encourages timely responses while allowing enough time for departments to gather the necessary information.

Follow-Up and Support

Implement a follow-up schedule to remind departments of the survey. Offer support by providing a point of contact for any questions or clarifications, demonstrating the accounting team’s readiness to assist in the process.

Training Sessions

Consider holding a brief training session or webinar to walk through the survey, highlighting why each piece of information is needed and how it affects lease accounting. This can help in getting more accurate and complete responses.

Incentives for Completion

While not always necessary, providing incentives for timely and complete survey responses can motivate departments to prioritize the task. Even simple acknowledgments or small rewards can make a difference.

Utilize Technology

Employ survey tools that allow for real-time tracking of responses and automated reminders. This technology can significantly reduce the administrative burden of following up and compiling data.

Departmental Lease Survey Summarized

A well-executed departmental lease survey is crucial for capturing all leases and ensuring that they are accurately reflected in an organization’s financial statements. By designing a clear and comprehensive survey, communicating effectively with department heads, and employing best practices for distribution and follow-up, accounting teams can enhance lease management processes and uphold compliance with accounting standards. Remember, the goal is not just to collect data but to foster a culture of transparency and collaboration across the organization, ultimately leading to more accurate and reliable financial reporting.

Lauren Covell is a Certified Public Accountant who currently lives in St. Louis, Missouri. She started her career in the PwC audit practice. After PwC, she joined a consulting firm and assisted companies in navigating complex technical accounting matters and streamlined their monthly close processes. Prior to joining Occupier, she was responsible for implementing ASC 842 for a vast portfolio of retail and equipment leases at a high growth consumer products company. Lauren is also passionate about collaborating with others to optimize solutions and creating win-wins for every stakeholder in the process