News built for finance pros
CFO Brew helps finance pros navigate their roles with insights into risk management, compliance, and strategy through our newsletter, virtual events, and digital guides.
Finance executives have a lot to worry about with lease portfolio management, if the latest survey results from lease management and accounting platform Visual Lease is any indication.
The survey, which gathered responses of 200 finance executives and 200 real estate execs in mid-July, found that finance leaders’ biggest concerns regarding their lease portfolios included compliance with ESG reporting requirements (52% of respondents), maintaining complete and accurate data (49%), and reacting to unforeseen events (49%).
Of all finance execs’ lease management concerns, ESG reporting saw the biggest jump from last year’s survey. Less than half (44%) said they were worried about ESG reporting compliance in 2023.
When asked about misreporting company lease information, finance leaders said they were most concerned about increased audit fees and fines (58%), followed closely by reputational harm (57%).
According to real estate execs, the most common negative outcomes of insufficient lease controls were incurring responsibilities that actually belonged to landlords (37%), overpaying on rent or expenses (36%), and an inability to respond to changing circumstances (36%).
Robert Michlewicz, CEO of Visual Lease, said he expects lease management strategy will be a “top business priority in 2025.”
“As leases are often a business's second-largest expense, there is much to be gained from managing these assets appropriately," Michlewicz said in a news release. “Key benefits include the ability to react to unforeseen circumstances, identify cost savings opportunities, and easily sustain accurate financial reporting and compliance.”