Executive Summary  

National Pharmacies operates more than 60 leased retail locations across Australia, making lease accounting a material and recurring finance responsibility.  

The organisation operated a heavily customised legacy module that required specialist familiarity to manage effectively. While a system change had been under consideration, the departure of a senior financial accountant highlighted concentration risk within the process and accelerated the decision to strengthen the control environment.  

After evaluating alternative providers, National Pharmacies selected OneTouch Leasing based on:  

• Strong technical alignment  

• Direct accountant-led implementation  

• Lower total software cost  

Implementation was completed in under two months and ahead of internal expectations.  

The transition delivered:  

• Approximately 75% reduction in software cost 

• Approximately 30% productivity improvement  

• Elimination of manual journal adjustments  

• No follow-up audit inquiries, including in the first audit cycle following implementation  

• Scalable infrastructure capable of supporting significant lease growth without additional headcount  

Introduction   

Lease accounting risk is rarely visible until dependency is exposed.  

That was the situation facing National Pharmacies when the senior financial accountant who understood their customised lease model left the business. For an organisation managing more than 60 leased retail locations, the exposure was material.  

Client Overview  

A Complex Lease Portfolio Within a Multi-Site Healthcare Group  

National Pharmacies is an established Australian member based  healthcare organisation operating for over 110 years.  

The group manages over 60 corporate-operated locations across South Australia, Victoria and New South Wales, spanning pharmacy, optical, retail health and wholesale distribution.  

Unlike franchise networks, National Pharmacies retains full responsibility for its property leases. With more than 60 active lease agreements, and some sites operating under multiple contracts, lease accounting represents a material and recurring financial reporting responsibility within the finance function.  

The Challenge  

When Customisation Became Operational Risk  

Lease accounting was managed through a customised module attached to the organisation’s budgeting system.  

While functional, the configuration required detailed familiarity to operate effectively. Over time, internal workarounds and specialist knowledge became embedded within the process. Accurate outputs depended not only on system logic, but on understanding how it had been customised over time.  

On average, the National Pharmacies configuration generated between 650 and 700 discrete lease accounting calculations each month. These calculations flowed through to approximately 400 recurring journal entries across the portfolio. Manual journal adjustments were frequently required to reconcile calculated figures.  

The legacy system faced particular difficulty in processing lease lifecycle events accurately, notably CPI-driven uplifts and market rent reviews. These events represented the primary driver of manual journal intervention, typically occurring more than once  per month. Each instance required recalculation and adjustment outside the system. 

The organisation had already begun considering whether a more purpose-built solution would provide greater long-term resilience. The departure of a senior financial accountant with deep knowledge of the system brought the concentration of expertise within the process into sharper focus.  

What had previously been manageable now presented governance risk.  

Constraints  

Improving Control Without Disrupting Reporting  

Any transition had to meet practical and operational requirements:  

• Reporting deadlines could not slip  

• Audit integrity had to be preserved  

• The system needed to accommodate complex and non-standard lease arrangements  

• Internal budget approval was required  

• The solution needed to reduce ongoing software cost  

• The solution needed to accommodate portfolio complexity without additional resources 

The replacement needed to strengthen governance and resilience without disrupting reporting timetables or increasing headcount. 

The Decision  

Why OneTouch Leasing Was Selected  

National Pharmacies evaluated three lease accounting providers.   

After evaluation, OneTouch Leasing was selected based on:  

• Direct accountant-to-accountant engagement  
  Engagement was conducted with qualified accountants who understood lease accounting standards and finance reporting requirements, removing the translation layer experienced with other vendors.  

• Technical alignment with complex lease arrangements  
  The platform demonstrated the ability to accommodate non-standard and multi-contract lease structures without extensive customisation.  

• Superior handling of complex lease lifecycle events 
  Capability in managing CPI uplifts, market rent reviews, and lease modifications was materially stronger than alternative solutions evaluated, delivering greater precision, transparency and control while reducing manual intervention. 

• Integrated budgeting and forecasting capability 
  A synchronised test environment enabled accurate lease modelling ahead of budgeting cycles, providing flexibility while ensuring forecasts reflected accurate lease liabilities and commitments. 

• Commercial advantage  
  OneTouch Leasing was more cost-effective than the other providers evaluated and approximately 75% lower than the legacy system.  

The decision strengthened the control environment while improving commercial efficiency.  

Implementation and Execution  

A Controlled and Efficient Transition  

The implementation progressed more smoothly than initially anticipated.  

From the outset, engagement was conducted directly with experienced accountants who understood both lease accounting standards and practical reporting requirements. This removed the need for repeated explanation or translation of accounting concepts into system configuration.  

OneTouch Leasing delivered its implementation through a clearly defined five-stage methodology: analysis, configuration, reconciliation, training, and go-live. 

The approach was deliberately straightforward and highly structured, ensuring control, transparency and a smooth transition at each phase of the project. Responsibilities, validation checkpoints and reporting outputs were clearly defined from the outset, reducing ambiguity and accelerating decision-making. 

Configuration questions were addressed quickly, and refinements identified during testing were implemented within days rather than weeks. This responsiveness reduced friction and allowed the project to maintain momentum throughout.  

Data migration was supported by structured validation. Legacy lease data was prepared prior to migration, with opening balances confirmed before being loaded into the new system.  

A parallel reporting cycle was conducted using three reference points: the legacy system, an independently prepared manual model, and outputs from OneTouch Leasing. A longer parallel period had initially been expected. However, the first outputs from OneTouch Leasing aligned closely with the independently prepared calculations and provided greater transparency and control than the legacy system outputs. This early validation reduced the need for extended dual processing.  

The full transition, including migration and validation, was completed in under two months and ahead of internal expectations. Reporting continuity was maintained throughout the process. 

The implementation followed a no-code, low-code deployment model, with configuration performed directly within the software environment rather than through bespoke development.  

Both the OneTouch Leasing implementation team and client end-users configured the system to their operational and reporting requirements without reliance on technical specialists. 

Results and Impact  

Cost Reduction, Productivity Gains, and Audit Assurance  

Since its implementation in November 2023, National Pharmacies has achieved:  

Cost Efficiency  

Ongoing lease software costs have been reduced by approximately 75 percent compared to the legacy system. The platform requires minimal customisation and does not depend on workaround configurations, making it easier to maintain and reducing the need for special oversight. The result is a lower-cost and simpler lease accounting environment.  

Increased Productivity and Elimination of Manual Manipulation  

Lease accounting productivity increased by approximately 30 percent following the removal of manual journal adjustments and spreadsheet corrections. Calculations are now generated by the system and posted without further manipulation, allowing time to be redirected to other finance responsibilities, including income tax and year-end work. 

Reduced Key-Person Dependency  

OneTouch Leasing can be operated by an accountant with basic lease accounting knowledge. Routine lease activity is now managed across the finance team without reliance on specialist system expertise, reducing operational risk in the event of staff turnover. 

Audit Confidence  

The first audit cycle following the transition was completed without additional questions. Subsequent audits have remained routine. Lease accounting is no longer approached with concern during audit periods, and the finance team reports confidence in the accuracy and integrity of system-generated outputs. 

Scalability  

The system supports continued growth in the lease portfolio without proportional increases in workload. Even if the number of leases were to double, additional headcount is not anticipated. Lease accounting is now structured and repeatable within the finance function.  

Ongoing Support and Responsiveness  

OneTouch Leasing provides direct access to experienced accountants who respond quickly to queries and configuration requests. Questions are acknowledged promptly and refinements are implemented within days.  

This level of responsiveness has reduced operational friction and reinforced confidence in the system. The finance team reports feeling supported rather than reliant on internal workaround knowledge.  

Conclusion  

By moving to purpose-built lease accounting software, National Pharmacies strengthened the resilience of its finance function.   

Lease accounting is now predictable, controlled, and sustainable as the organisation continues to grow. The change has reduced cost and operational risk while widening internal capability.  

The result is a lease accounting process that supports the business rather than constrains it.  

Is Your Lease Accounting Consuming Too Much Finance Capacity?  

OneTouch Leasing provides purpose-built lease accounting software designed for organisations managing complex lease portfolios under FRS 102. Replace spreadsheet-driven processes with a structured, scalable solution that improves control and finance productivity.  

Contact OneTouch Leasing to discuss how your organisation could achieve similar results.