X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

When it comes to identifying areas prime for cost cutting, equipment lease accounting arrangements are pretty far down most CFOs’ lists. For many companies, especially those not in manufacturing, leasing revolves around dozens of agreements spanning many thousands of pieces of equipment, such as personal computers and telephones. For others, it involves a fewer number of large pieces, such as transportation vehicles and equipment. On the surface, even when taken together, these transactions may be relatively small when compared to other line items. But such conventional thinking didn’t stop Dave Huber, vice president of financial planning and analysis at Horizon Healthcare Services Inc., from taking a closer look at the $5.5 billion not-for-profit insurance provider’s leasing processes soon after he joined the company. “The way we evaluated leases was overly simplistic, making decisions based just on interest rates,” says Huber, who explains that most of the company’s leasing was for servers, PCs and laptops used by Horizon’s 4,500 employees. “My intuition told me we weren’t doing this as efficiently as we could be. People didn’t realize we had a problem.”

Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.