What Does Lease Accounting Software Do?

Lease Accounting Software

Lease accounting is an integral aspect for any enterprise that wants to have a clear picture and understand its financial and operational positions. This involves identifying, analyzing, verifying, interpreting, and presenting important lease information. Businesses must record leases that meet specific classifications in their financial statements. Comprehensive recording of accounting of leasing activities provides a clear picture of an enterprise's assets and how the leases impact its financial health.

Additionally, lease accounting helps organizations comply with financial reporting standards for lease contracts. Despite the importance of lease accounting to any business, recording and interpreting lease activities can be overwhelming.

However, technology has introduced new solutions to help with the in’s and out’s of lease classification. Organizations are turning to such technology to hasten operations and increase efficiency. One such tool is lease accounting software.

What is Lease Accounting Software?

Lease accounting software provides the calculations that organizations need to manage the full breadth of their lease portfolio to comply with lease accounting standards. These tools tracks payments made, invoices sent, and generate reports/records needed to comply with the FASB and IASB standards.

When a company is at its initial growth stage, it can handle leases using homegrown solutions. However, it reaches a point where lease management activities become complex and overwhelming. This is where lease accounting software comes in handy. It provides efficient lease management solutions and expands alongside the growing portfolio.

Staying abreast with the vast lease standards involves complex calculations to help identify the leases that should be included in the financial statements. Lease accounting software simplifies and streamlines lease calculations, ensuring that all lease reports and records are in line with the compliance standards. Leveraging lease accounting software helps ensure that your organization has proper systems that guarantee compliance even if the lease standards change over time.

Additionally, some lease accounting software applications can act as a data repository. This lets companies know lease terms, renewal deadlines, and lease payment information and contact.

Compliance with Latest Lease Accounting Standards

Lease accounting software ensures that companies report existing leases and new leases per domestic and international lease accounting standards. The solution facilitates lease accounting for businesses that report under IFRS, FASB, and GASB.

The software provides comprehensive accounting calculations and the information integral for compliance. With lease accounting software, you can meet new FASB financial requirements under ASC 842. You can create ASC 842 compliant reports, including cash flows, complete disclosure reports, amortization of right-of-use (ROU) assets, variable lease cost, interests of liability, and more.

Comprehensive Management and Administration

Lease accounting software often integrates management and administration properties, creating an all-in-one solution. The tool can help you store and track lease portfolios, deadlines, documents, tenants and customers, and more. It also acts as a repository for vital information like lease term length, expiration, rate, and pertinent customer or tenant data.

With an all-in-one date depository system, you can track, manage and increase visibility into your entire organizational lease portfolio. Moreover, you can quickly calculate your lease and expense obligation. Additionally, lease management allows for automatic updates when leases are signed, renewed, or halted. Whether you're the lessor or the lessee, how you manage and administer assets, liabilities, and expenses from leasing activity will impact your overall financial health.

What is iLeasePro?

Are you looking for a comprehensive solution to help you transition and navigate complex lease standards? Look no further than iLeasePro. Our integrated lease accounting tools will address all the provisions of the latest lease accounting standards, including ASC 842.

How Will iLeasePro Help Your Company

• The iLeasePro lease accounting software automatically generates the initial transition journal entries.
• Offers lease classification wizard to help navigate the FASB classification. Through guided questions, iLeasePro enables you to identify how leased assets and liabilities are categorized.
• You can generate amortization and expense schedules for an entire lease portfolio or an individual lease through lease accounting software.
• The solution will also provide you with the data required for full portfolio disclosure according to the ASC financial disclosure reporting.
• iLeasePro accounting software auto-generates monthly journal entries posted into the accounting system of record. The journal entries can easily be exported or uploaded from the iLeasePro to your accounting system.