Vehicle lease administrative software is becoming more and more popular due to its paper-free capability of supporting all phases of the vehicle lease process, from contract development to contract termination or revision. This software streamlines the interaction among all involved parties, including the dealer, lessee, and funding source, saving time and money. However, many people assume that they need a strong accounting background in order to operate the software. In truth, the program handles nearly all of the accounting, requiring minimal knowledge among employees. This article takes a look at the accounting knowledge required of various types of employees involved in the vehicle lease admin process.
Data Entry Staff
Data entry staff are not required to have any accounting knowledge to operate vehicle lease accounting software. When data needs to be entered, the program will select the appropriate template based on the type of transaction, and the associated accounts will be credited and debited accordingly. The program automatically makes journal entries and performs all accounting. The user can override the system at any time, correcting any issues or inputting any unique circumstances.
Middle managers have more of a decision making role and thus should possess basic accounting knowledge. They will need to consider the company’s vehicle needs vs. budget, as well as the liabilities that will be incurred by leasing vehicles. Finance managers especially need basic accounting knowledge, as they will determine whether the vehicle(s) is an operating lease or capital lease, and how it affects the balance sheet (and not to mention how the lease affects taxes). They will need to review any reports generated from the vehicle lease accounting software and maintain overall corporate finances in conjunction with the software’s output.
Upper management maintains a larger picture of the company and makes more holistic decisions. Thus, they do not need any accounting knowledge. They will not be reviewing the performance of the lease admin software but rather using results to make company-wide decisions. They can rely on their finance division to provide accounting expertise if needed.
In addition to the basic management of vehicle leases, some lease admin software solutions even manage additional services such as titling, registration, maintenance, property tax management, and accident management. Regardless of the specific services offered, the software will support the entire lifecycle of the contract and will handle all accounting needs, making things very simple for your employees.
DataNet offers a wide range of lease admin software solutions. Visit their website for more information.