Lease Accounting Software

The best lease accounting software is one that will help you effectively identify, manage and reduce any financial risks associated with your lease portfolios by:

• Automating your processes
• Helping you keep track of journal entries for simpler lease liability
• Helping you track audit trails for the financial accounting standards board and other regulatory bodies

You will also want a tool that:

• Integrates easily with your existing tools and systems, including your ERP, your existing POS, and your accounting systems
• Is verified as a compliant solution for handling regulations - like ASC 842, IFRS 16 and GASB 87 - complete with reporting and ERP integration
• Does not carry the risk of a failed implementation, which can cost time and money
• Guarantees accurate lease abstraction
• Offers ongoing product support and innovation, including ongoing training for employees
• Will not be siloed

Lease accounting software, at its most basic, is a category of financial software that's made to simplify compliance, lease classification, and lease management. This is done through features that reduce manual data entry, increase visibility and streamline the creation of balance sheets, cash flow statements, quantitative disclosure reports and other key financial documents. Ultimately, this streamlined work will help you meet ASC 842, GASB 87, SFAS 54 and IFRS 16 standards.

In many instances, companies enter into agreements that allow them to use intangible assets like software and consider those part of their lease. This is not the case under ASC 842. Using intangible assets like software is outside of the scope of ASC 842 (refer to ASC 842-10-15-1 for more information). Use the guidance in ASC 350 if you would like to include software into your lease arrangements.

Comprehensive ongoing support

The vendor's support staff should be able to provide you with ongoing product training, technical support and full customer support. Accruent global support team offers free superclass training, a proven certification training curriculum and a robust user network.

The right automations and functionalities for your business

The lease accounting tool you choose should meet your needs both out of the box and in the long term. Ask your potential vendors:

• If reports will be formatted according to the standard's disclosure requirements
• If their software will send automatic alerts when it's time to renew
• If the software can guarantee compliance as financial reporting requirements change
• If comprehensive reporting capabilities are offered for long-term tracking

Customizable integrations

After the initial sale, many vendors do not offer product enhancements and innovations, so their products quickly become dated. Look for a company that continuously enhances its offerings based on feedback and market trends. In the same vein, make sure that the solution you choose is not siloed and that it will offer the continued functionality and integrations you will need down the line.

SOC report compliance

System and Organization Controls (SOC) reports are reports issued by third-party CPAs that help establish credibility of service providers. They establish credibility based on five categories: security, availability, processing integrity, confidentiality and privacy.

There are three types of SOC reports, though SOC type 1 and SOC type 2 are most relevant for lease accounting software.

You will want to make sure that your provider is compliant with SOC 1 and SOC 2 so you can be sure you're working with trustworthy software.

Yes, here is how Lucernex lease accounting software helped Banfield Pet Hospital centralize ease data, connect their accounting, and simplify lease information:

Banfield Pet Hospital Streamlines Lease Administration and Accounting

 You can check out the full case study here.