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Set up a tracking system for your equipment leases.
At Small Business Accountancy Scotland we can provide businesses in the Falkirk area with advice on a wide range of financial issues. Here are some tips on tracking leases…
Many businesses have inadequate systems for tracking their equipment leases, and often fail to note maturity and renewal dates.
Leases are not cheap - especially if you are responsible for maintaining the equipment and/or paying for the insurance cover on it - so it pays to monitor them carefully.
It is not unknown for leased equipment to be returned on the expiry date without the accounts department being notified, and for payments to continue for weeks, months, and even years without anyone noticing.
A bank that eventually discovered it had paid millions in excess lease payments and associated costs reviewed all their current leases, noting the critical dates and terms of the agreements, and then developed the following tracking system.
Whenever a lease agreement was entered into, the following information was recorded and passed to everyone concerned:
We recommend that, if you have not already done so, you set up a similar tracking system.
If you are looking for professional assistance from a team of accountants and business advisers in the Falkirk area, contact Small Business Accountancy Scotland.