Beauty retailer gains tighter control of leases
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Controlling physical assets — and adhering to compliance requirements — can become daunting as chains grow.
To streamline the process, Sephora is adding lease management software from Accurent. Specifically, the software will enable the beauty giant to manage leases for more than 400 locations in the United States, Canada and Puerto Rico.
The solution will also help the chain comply with the new accounting standard, ASC 842, which requires non-governmental companies and organizations to include lease obligations on their balance sheets. For lessees, the recognition of lease-related assets and liabilities, as well as changes to the timing of lease expense recognition, could have significant financial reporting and business implications.
Armed with the software, Sephora can make needed reporting changes in real-time by actively monitoring the changes to the lease accounting standards, and incorporating them into its lease administration solution. The software manages core financial data for the generation, management and reporting of lease standards.
Additionally, Sephora will have access to other capabilities in Accruent’s software including co-tenancy, key date notifications, robust reporting for increased visibility into the status of their leases, and greater control over their lease administration, according to Accruent.