Features of Lease Accounting Software
You may be wondering, what are the key capabilities you should be looking for when making your lease accounting software selection? Some features are obvious. For example, the software needs to be able to perform the proper accounting under the new lease accounting standards (FASB ASC 842 and IFRS 16). Generating the necessary journal entries required to report your leases as assets and liabilities on your balance sheet will be most critical to supporting the standards. To arrive at the journal entries, you will need an accounting engine and a database that can store the key terms and conditions for each of your leases: base and variable rents, start and end dates, and end-of-term options. Beyond these basic features, what else should you look for in a lease accounting software application?