Avoki

When Avoki, a leading IT provider in the Nordics, realized their manual management of leasing and rental agreements in Excel was becoming increasingly time-consuming and difficult to manage, it became clear they needed a more structured solution. That’s where Leasify came in. In this interview, Maria Persson, Group Financial Controller at Avoki, shares how Leasify has simplified their IFRS 16 reporting, streamlined their workflows, and helped them save time and resources in their daily operations.

Could you tell us a little about Avoki?
– Avoki is a leading IT provider that has been in operation since 1993. We offer solutions and consultancy services in hybrid workplaces, security and networking, cloud and hosting, meeting technology, as well as innovation and AI. Avoki is owned by Nalka Invest AB, and in 2023, we had a turnover of 1,100 MSEK. We operate from twelve offices across Sweden, Norway, and Finland.

You’ve been working with accounting at Avoki since 2017. How did you manage your leasing and rental agreements before using Leasify, and what difficulties did you encounter?
– I managed all our leasing and rental agreements manually in Excel. For our car leases, this meant gathering data from our lessors. While the reports and summaries were helpful, I still had to spend significant time reviewing each individual agreement and creating journal entries. On top of that, I had to manually determine what was long-term versus short-term and handle the depreciation myself.

– For rental agreements and other assets, I relied on an older Excel template. However, the template lacked key elements, such as deferred tax. It also didn’t provide clear specifications of what was current, newly added, or terminated, making it difficult and time-consuming to gather all the necessary information for accounting purposes.

How long have you been using Leasify?
– The service was implemented in August 2023, but I started using it fully for the year-end closing. So, it has been in operation for almost a year. 

Have you noticed any improvements in your IFRS 16 reporting?
– Absolutely. We now have more accurate reconciliations overall. In particular, we have much better control over the liability accounts and their movements throughout the year, including currency adjustments. I can easily break down the liability accounts and demonstrate how the debt is structured, which simplifies the year-end closing process. It’s also much smoother to differentiate new agreements from the amortization portions within the liability accounts.

What do you find to be the most time-consuming aspects of IFRS 16 reporting?
– Collecting the correct documentation from the organization in compliance with the regulations. Reconciling and specifying all the details in the reconciliations used to take a lot of time, but thanks to Leasify’s reconciliation reports, it has become significantly easier. Today, the work with IFRS 16 doesn’t feel as overwhelming – everything runs more smoothly, and we save time.

How has our service helped you save time and resources?
– Adding a new rental agreement is quick once the parameters are in place. Recently, I added an agreement for a newly acquired company and was immediately able to generate everything needed for an accurate calculation. Once the agreement is entered, I have full control over where everything is stored and which company is responsible for it – this saves an incredible amount of time. The documentation for November is already prepared, and all I need to do is add it to the accounting system. The best part is getting accounting documentation faster and with better control.

What would you say is the biggest change in your workflow now? 
– Everything is fully automated – once the groundwork is set up correctly, the service takes care of the rest. I now have automatic updates for index adjustments and reminders for contract termination dates. Previously, I had to manually gather agreements, recalculate, and create journal entries. This has led to significant time savings.

Have you experienced any unexpected benefits?
– The Forecast module has been an unexpected bonus, especially now as we prepare for the budgeting process. We added the module later, but I quickly realized how valuable it could be. I often get questions about how the leasing liability is expected to develop, and now I have a tool that makes it easy to generate these projections.

What do you think of our support and availability?
– Every time I’ve been in contact with your team, it has worked out well. For example, I recently had an issue with adding an agreement and reached out to support. I thought I’d be satisfied if I got a response within a day, but I received an answer that same afternoon, which I really appreciated. It’s also reassuring to get a confirmation like “we’re looking into it” or “we’ll get back to you by then” – it lets me know the issue is being handled. This type of follow-up has always been consistent, and it gives me peace of mind.

What would you say to potential new Leasify customers? 
– During the implementation phase, it’s crucial to invest time in gathering all leasing agreements, including the original contracts. Make sure to retrieve the actual agreements, not just invoices. When we were in the implementation phase, I initially only used previous invoices for our cars, which worked to some extent because our lessor provides summaries. However, for other leasing agreements, the original contracts are even more important as they give a complete picture of what has actually been agreed upon. Taking the time to collect all agreements is a step that will make a real difference in the long run.

Is there anything else you’d like to add?
– I would highly recommend Leasify. It feels much more secure and efficient than being stuck with Excel spreadsheets. Even for smaller companies, it’s well worth the investment to gain better control. For me personally, it has made my workday significantly easier. For example, even though I do the bookkeeping in local currency, I can easily perform a currency conversion and generate a consolidated report. It’s reassuring to have that functionality integrated into the reporting and to know that everything is organized in one place, she concludes.

Maria Persson, Group Financial Controller at Avoki.