How Can Lease Management Software Increase the Security of Your Business

How Can Lease Management Software Increase the Security of Your Business

Managing a lease portfolio efficiently is critical in the leasing industry, especially when it involves sensitive client data and essential documents like lease abstractions and contract management. Security errors should be intolerable as they pose a risk to the integrity of your business, your reputation, and the trust of your clients. A simple data breach could mean the end of all your enterprise efforts. If you still assume data theft is a far-fetched tale, we encourage you to look at the numbers. Just last year, almost 4000 alarming cases of data breaches were recorded. Nowadays, hackers do not necessarily only target big-stake companies. Smaller businesses are known to skimp on their security, making them excellent targets.

Why would hackers even try to steal data from you? Information, especially concerning personal client details within the lease lifecycle—from occupiers to stakeholders—is precious. This information, especially personal client data, can be sold in places like the dark web. Once the leaked data gets sold, the only way out is for clients to cancel their credit cards, immediately change all their passwords, and so on. Essentially, all hell breaks loose. Companies that fall victim to data breaches have to reach deep into their pockets because of various penalties, breach fines, and settlements. So far, data breaches caused by weak security ended up costing companies over $1.3 billion. Weak security protocols impact not only the process of lease tracking and portfolio management but also the overall trust in software as a service (SaaS) platforms.

Clearly, data theft is no joke, and any risks should be avoided at all costs. If you have not ensured proper security protocols, digital space is a slippery territory. Everything is well until it is not. Just one breach can be the deciding factor. So, how could one minimize the risk of data leaks, documents getting lost, and other unfavorable circumstances? One of the answers is having a modern ERP system or simply a well-made lease management software. It is a centralized digital solution for all the functions a company could need when dealing with lease calculation, lease accounting, lease portfolios, financial reports, critical dates, renewals, and customer services. In addition to increasing the efficiency of everyday tasks by a margin, modern lease administration software solutions provide sophisticated security functions to keep all kinds of malicious activity at bay.

Arguably, the most important security feature of lease accounting software is data encryption. That is something that should help you in the decision-making process when choosing a suitable lease accounting system. Data encryption is an advanced security measure that encodes data. To anyone who does not have access to the necessary encryption key, encrypted information will look like a scrambled mess. That renders it unreadable to hackers, even if they manage to get ahold of the information. Data encryption is one of the main lines of defense in the cybersecurity architecture, and it covers a lot of ground on its own. A good indicator of quality protection in lease management software is SSL encryption coupled with two-factor authentication.

Two-factor authentication, or two-step verification or dual-factor authentication is a modern security process that requires users to provide two different authentication factors to gain access to a system. Regular verification systems usually use one password or passcode to verify a user. Two-factor authentication relies on passwords as the first factor. The second factor is typically a security token or a biometric factor that requires a fingerprint or facial scan. Naturally, this increases the security of a system manifold due to the additional layer of verification. While password protection can be hit and miss, biometric data is known to be incredibly hard to crack. Most modern bank systems already successfully use two-factor authentication. The simplicity of implementing it should have you considering why you still haven’t. After all, your livelihood could depend on it if you happen to get on the hacker’s radar.

Another major security risk is dealing with proper document management. It’s important to set up a working management system to deal with various spreadsheets, lease agreements, and copies of lease documents. Whether it is on a physical or digital copy, having a backup is of the essence. If you work with paper documents, the risk of losing or leaking data is pretty high. However, even multiple digital copies can get lost or superseded on work computers. Having multiple backups is a step towards ensuring you won’t have to deal with any problems. However, cloud backups are even better. Cloud-based storage provides a centralized solution that enables real-time updates. Some of the benefits include immediate storage scalability and sounder accessibility without the high costs of having on-site servers. By using cloud-based backups, you will ensure that no data files will ever be lost, overwritten by mistake, or stolen. Top-tier lease management software solutions can upload your lease data straight to a cloud backup and keep everything in sync. These functions integrate with everyday tasks seamlessly, and it is undoubtedly the future of computing. Most companies worth their salt have already started adopting cloud backups years ago.

The security of your business is not only dependent upon malicious activity. In a sense, safety from foolish errors is also quite important, as it can save you some big headaches down the road. One of the fields where it is easy to lose track of things is complying with ever-changing legislation. Keeping up with them is a demanding task with no tolerance for mistakes. Failing to comply with regulations and lease accounting standards such as IFRS 16 or ASC 842, for example, leads to penalties, and it can even mean the loss of your licenses. High-end lease management software solutions can save you from such risks. Simply using software will not guarantee full compliance. However, it will streamline and automate workflows necessary for compliance, such as double-checking financial statements. These programs can provide you with user-friendly dashboards and other tools to effectively analyze all data and alarm you if any red flags could impede your adherence to various legislations. In the case of a medium company, manually proofing thousands of documents is no simple task. Why strain your human resources when a software solution can do this task cheaper, faster, and with little to no errors?

All in all, the digitization of companies is undoubtedly far ahead. Computer systems are far more efficient, and whoever fails to upgrade will simply fall back amongst the competition. However, this vast digitization poses serious security risks for any company dealing with sensitive data. For leasing companies, modern, top-tier lease management software can provide all the protection it needs. Not only will it make things safer, but it will also increase efficiency across the board, help your business optimize its processes, and it will aid you in keeping up with compliance regulations. That is a whole lot of bang for your buck if you ask us. Sooner or later, every company will upgrade to lease management software due to the enormous benefits it provides. Why would you keep waiting and expose your company to risks in the meantime?