What is Lease Accounting Software?

Introduction

Lease accounting software efficiently handles and reduces financial risk related to lease portfolios. Further, it centralizes the lifecycles and processes of lease portfolios. The application automates the manual procedures of tracking journal entries, the audit trail of each lease, and whether a lease is a financing or operating lease. In addition, the program enables businesses to comply with IASB and FASB regulations.

Lease accounting tools prepare companies for crucial dates for financial reviews and audits. The platform typically integrates with ERP tools to automate the production of general ledger journal entries. It can also integrate with accounting and POS solutions to provide firms full visibility into their whole lease portfolio.

Lease accounting software helps to precisely compute lease data and create journal entries, categorize lease types, and arrange notifications for vital dates, and supports data importing from existing spreadsheets and repositories into the system’s database. Further, you can store and monitor data on each lease, asset, and journal entry, and ensure lease compliance with the latest leasing accounting regulations.

Features of Lease Accounting Software

Automated Journal Entries

You can easily produce various types of finance and operating lease liabilities inside journal entries by utilizing data maintained in the application. After your data is populated in the program, you can automatically generate everything from journal entries to calculations to disclosure reports.

Reporting

Strong reporting features enable you to access and see information stored in the software, through both ad-hoc and standard reports. You can opt to review standard reports or create your own ad-hoc, configurable reports on any field in the software.

 “Just” Accounting vs Lease Administration

Lease accounting software offers lease administration functionality that tracks data and helps to generate precise calculations. Lease administration includes the following:

Management of lease documentation

Preliminary and continuing input of lease data

Management of financial and legal payments/obligations

The following important lease administration tasks offer checks and balances in the lease accounting solution functions, including:

Running backup and disclosure reports

Creating journal entries to ledger

Preliminary and continuing accounting computations based on lease data

Flexibility to Manage IFRS 16 & ASC 842

A configurable lease accounting platform helps you to capture particular fields and monitor lease information to meet both IFRS 16 and ASC 482 requirements. You can leverage a system that permits you to effortlessly configure pertinent lease information. This assists you to organize your data to fit your workflows.

Implementation Plan

The vendor will provide you comprehensive implementation support to help you get started quickly with the lease accounting software. An effective implementation strategy offers milestones for each stage, including:

Pinpointing crucial project goals

Consultation on best practices

Import templates for data migration

Training, support, and sign-off

Go-live

Benefits of Lease Accounting Software

Lease accounting software helps your company to track your equipment and real estate leases, handle routine changes, and be compliant with the latest lease accounting regulations, all using a single platform. In addition, the vendor will typically provide the following deployment services:

Training

The vendor’s services team will schedule and conduct several training sessions for your different user groups. You can generally opt for training via web meeting or onsite at your premises.

Accounting Integration

The lease accounting software will be integrated with your current accounting applications to automate your accounting journal entries, rent payment procedure, and more.

Data Migration

In addition, the vendor will help you get started quickly by migrating your current lease data into the lease accounting program from virtually any file format or database.

Lease Abstraction

The vendor will collaborate closely with you to abstract and input leases straight into your lease accounting software database as part of your implementation and ongoing support processes.

Reliable Support

Finally, the vendor will provide dependable technical and customer support to quickly resolve your issues and queries.