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.
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:
Learn about the difference between lease accounting and Lease Lifecycle Automation software using this guide.
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.