With over 90 stores spread across five countries, HiFi Klubben faces the complex challenge of managing numerous commercial leases, all of which need to comply with IFRS 16 lease accounting standards. 

"When I started, one of my first tasks was to bring all the rental contracts into compliance with IFRS 16 for the annual report. We have more than 100 leasing contracts, and with stores located in five countries, it was crucial to streamline our lease accounting and reporting processes."

As a growing business, HiFi Klubben needed a robust solution to manage the intricate details of their commercial leases, which varied by location, terms, price indexes, and national regulations. Lease calculations and updates were managed manually in Excel, which led to inefficiencies and a heavy workload for HiFi Klubben’s finance department. 

“The Excel files were built for smaller-scale lease contracts. But with our many leases across different countries, it became a massive file to manage. We also have contracts that are based on national indexation, and our Excel template could only handle fixed indexation. This resulted in mistakes in the figures, making it challenging to ensure accuracy."

The sheer volume of contracts and the complexity of managing varying terms across different countries made manual updates time-consuming. Harutunian realized that a more scalable and efficient solution was necessary to maintain accuracy and meet the stringent requirements of IFRS 16 reporting.

“I had to start from scratch in terms of uploading and configuring our contracts. But once we began, the benefits were clear. House of Control's team, including customer success experts Simon and Karl Oscar, worked closely with us to ensure a smooth setup."

Since adopting the software, Sona says HiFi Klubben has seen marked improvements in its lease management and reporting processes: “What used to be a complicated task with Excel has now become a much smaller task in the system. Making changes to a contract and updating the calculations is so much easier than it was before."

The software has significantly improved the accuracy of IFRS 16 reporting by providing better control over the contracts. "Before, it was hard to spot errors in Excel. Now, with House of Control, we can look at one contract at a time, making it much easier to identify any mistakes," she adds.