Svalövs municipality accurate RKR R5 reporting with Leasify

When Svalövs municipality (Svalövs kommun) received feedback from the auditors ahead of the 2023 financial statement review, it became clear that most of the lease agreements needed to be classified as finance leases in accordance with RKR R5. To meet this requirement, Accounting Manager Magnus Ranebo decided to use Leasify’s system. The result? A smooth onboarding process, excellent collaboration, and reports that passed the audit without any remarks.

About Svalöv municipality

– Svalöv municipality is located in Skåne county in Sweden, about fifteen kilometers inland from Landskrona. It is geographically large but small in population, with around 14,300 residents. The area is also home to Söderåsen National Park, known for its stunning natural beauty. The local economy is primarily made up of small businesses operating in agriculture, forestry, construction, manufacturing, and trade, explains Magnus Ranebo, the municipality’s Accounting Manager.

Magnus is primarily responsible for the municipality’s central finances, which includes preparing interim and annual financial statements.

– In addition to that, I also serve as the corporate accountant, meaning I’m responsible for one of the municipal companies, Svalövs Kommunservice AB. It’s now quite common for municipalities to incorporate certain operations, which we’ve done. My role, then, is to ensure that the accounting is consolidated, not only for the municipality itself but also together with the companies, to form a complete financial picture, says Magnus.

How lease and rental agreements were managed before Leasify

The municipality leases its properties through its own municipal real estate company. Previously, the lease agreements were not reported as finance leases in accordance with RKR R5. Instead, the rents were recorded as regular rental expenses. Invoices from the real estate company were received and recorded on an ongoing basis.

Magnus explains that they received comments from the auditors following the audit of the 2023 financial statements, where the auditors concluded that there were lease agreements that should be classified as finance leases.

– Our CFO, Patrik Löfstrand, and I therefore decided that ahead of the 2024 year-end closing, we would address the auditors’ comments and begin the process of reporting any applicable lease agreements as finance leases.

He also recalls how the contact with Leasify came about:

– We came into contact with Leasify when Daniel Wihlborg, the company’s Sales Manager, reached out to me. He scheduled a demo where he presented the service, and I considered it to be an excellent solution. It felt complete and user-friendly, which was one of the reasons we chose Leasify.

He continues:

– The other reason was that Leasify has many years of experience providing a service for financial lease reporting to large and complex organizations, such as publicly listed companies. This demonstrated their ability to deliver a solution that meets high standards for functionality and user experience.

Smooth onboarding with a focus on accurate data

Magnus experienced the onboarding process with Leasify as both efficient and well-structured.

– It worked very well. The main challenge for me was locating all the agreements and ensuring that the correct information was compiled. Having accurate input data is crucial when reporting financial leases. That meant we had to go back in time, retrieve the correct details, and verify when the agreements were originally signed, Magnus explains, and continues:

– I’ve felt confident throughout the entire process. And considering that we wanted to include the reporting in the 2024 annual financial statements, I think the process has worked out very well.

Audit completed without remarks

The auditors’ review of the reports went smoothly and without any issues.

– They reviewed the material and conducted a few spot checks but had no comments on it. They considered everything to be accurate. What we reported was approved by the auditors, Magnus explains.

Why Magnus recommends Leasify to other municipalities

When asked whether he would recommend Leasify to other municipalities, Magnus doesn’t hesitate for a second:

– Absolutely! I have only positive things to say about Leasify, so of course I would recommend both the company and their web-based service.

It’s not only the functionality itself that he appreciates, but also the way he’s been treated:

– I find Leasify to be very professional, with excellent customer service and that’s something I really want to highlight! Both Daniel and Richard Nilsson, the company’s Product Manager, have handled everything extremely well.

He also points out the technical setup as a key strength:

– In addition, I think it’s a great advantage that the software is web-based and allows for the inclusion of different departments. It’s an interesting feature that various divisions within the municipality can log in themselves, use the service, and manage their part of the accounting and reporting process.

Magnus: “Leasify makes RKR R5 simple and reliable”

Magnus wants to share a message with other municipalities working with the RKR R5 framework.

– With fairly limited effort, you can achieve full compliance with the RKR R5 reporting standard by using Leasify. In doing so, you also avoid the risks that come with homegrown or self-developed solutions, says Magnus.

He continues:

– I’m sure there are many who struggle with this and build their reporting in Excel – and of course, someone highly skilled can probably create something decent. But I find this solution to be secure, efficient, and user-friendly, especially since it’s web-based.

– As I mentioned earlier, another major advantage is that you can include other departments or units in the system and collaborate on financial lease reporting, Magnus concludes.