Modern flexible, managed and serviced office spaces aren’t just for start-ups, scale-ups and SMEs. They’re now increasingly being targeted as a viable alternative with many benefits by larger companies which have previously preferred a traditional leased office.

CFOs, accountants, financiers and other professionals at large enterprises have much to gain from embracing the new styles of office that are taking over the landscape.

One of the most significant advantages relates to International Financial Reporting Standards 16 (IFRS 16) which was introduced on 13th January 2016 andbrought in a new accounting standard that altered the way leases are accounted for.

This new standard meant that assets such as office space must now be fully recorded as liabilities on the balance sheet – a change which had big affects on the balance sheets of large companies with expensive leased offices.

Limiting your IFRS 16 liabilities

However, contracts of 12 months or less are generally exempted from the IFRS 16 standard, and many are predicting this exception will be the catalyst for more large companies to consider renting short-term flexible workspace.

Businesses with multiple large, expensive offices are now choosing a mixture of leased and flexible spaces as they review their existing leases.

Getting those expensive leased offices off the balance sheet is a major win when it comes to financial reporting. Removing the office cost by replacing an existing space with a flexible space on a short-term contract can help companies keep debt-to-equity and leverage ratios low, resulting in cheaper borrowing!

You also don’t have to lose out on the benefits of a leased space like privacy, control over the space and amore professional corporate feel.

Best of both worlds

Managed offices are a great example of an alternative that gives all of those benefits, but is available onmore flexible terms.

In many ways, you won’t even notice the difference when compared to a leased office, and anything you do see that is different will likely be a positive.

Managed office buildings tend to have better amenities than traditional spaces and be part of a ready-made business community that can help support your own work.

You can also choose your own space layout and brand it just like you would with a leased office space.

While managed offices to rent in Manchester are still relatively rare, the market is maturing and more space sare opening up all the time.

A great example of a company which successfully moved into a managed office is GigPig who got all the aspects of a leased office they were looking for along with added flexibility.

The new office opportunity that keeps your costs down

This presents a new option forlarge enterprises searching for a managed office in Manchester to start looking now to secure a perfect space that could also be exempt from IFRS 16 and help you get office costs exempted from your accounts.

Looking for office space to rent? Our consultative search service takes all the hassle of finding your next home off your plate so you can get on with growing the business.

Get in touch with our team today to book your free consultation.