Lease Accounting Software Evaluation
Learn what to look for in a lease accounting and Lease Lifecycle Automation solution
Download eBook to learn key features to consider, including:
Inside this guide
Choosing the right software for your application can be challenging. The FASB, GASB, and IASB lease accounting standards require public and private companies to provide more quantitative and qualitative details about leases in their financial statements. In addition to complying with IFRS 16 and ASC 842, public companies and many private companies need to ensure that the processes comply with Sarbanes-Oxley rules. With leased assets and liabilities much more visible on the balance sheet, external auditors are applying more scrutiny to the processes, systems and controls associated with leases.
The lease accounting standards require organizations to use more scalable and disciplined approaches to managing their leases. Most companies have replaced or will need to replace the spreadsheets they currently use for tracking leases with a proper enterprise application and standardized business processes.
Lease Lifecycle Automation is a category of software developed specifically to meet these long-term accounting and compliance challenges. These applications help companies account for and administer all of their leases – including real estate, vehicles, IT,
and other types of equipment.
Some of the critical capabilities to look for when evaluating the right software include:
- Designed for all required FASB and IASB standards, including ASC 842 and IFRS 16.
- Full support for equipment and real estate lease types, as well as embedded leases.
- Global lease accounting engine: Captures all data about each lease, from economic life and depreciation terms to end-of-term options and base and variable rents.
- Automatic lease classification: Classifies leases as operating, capital (under legacy standards), or finance (under current standards) to reduce the time and costs associated with manually classifying all leases.
- Asset-level subledger: Asset-level lease accounting is required under the lease accounting standards and provides the lowest level of granularity for better tracking.
- Journal entries and disclosures: Quickly generates everything you need for your quarterly and annual reports.
- Reconciliation and roll-forward reporting: Specialized control reports automatically compare data to find discrepancies before your auditor does.
- Integration capability: Integrate with ERP systems, including SAP and Oracle, as well as real estate administration, asset management, and accounts payable applications.
Learn about the difference between lease accounting and Lease Lifecycle Automation software using this guide.