Lease Accounting Software

Lease accounting software is a powerful tool that can help your organization maintain compliance with ASC 842, IFRS, GASB, and other financial reporting standards.

Lease Accounting Software with 100% Compliance Success Rate

ASC 842, IFRS 16 and GASB 87 Compliance

Accruent's lease accounting software, Lucernex, helps organizations meet and maintain adherence to current and upcoming lease accounting standards, including:

ASC 842

FASB ASC 842 went into effect in 2019 for most public companies to close the loophole that allowed corporations to hide assets and liabilities off their balance sheet. Among other things, ASC 842 requires that most leases need to be recorded and capitalized.

IFRS 16

IFRS 16, the latest IASB standard, went into effect in 2019. This new lease accounting standard changed how leases are reported, eliminated many operating leases and required that most leases be capitalized and reported on balance sheets.

GASB 87

GASB 87 is the latest Governmental Accounting Standards Board (GASB) lease accounting standard. It went into effect for most U.S. states and local government agencies in 2019, and it changed how leases are reported, eliminated most non-capitalized leases and required that leases be capitalized and recorded on balance sheets.

GASB 96

GASB 96 is a new standard that revolves around subscription-based IT agreements (SBITAs). It lays out the financial reporting and accounting treatment that must be followed for SBITA contracts. It goes hand in hand with GASB 87.

Benefits of Lease Accounting Solutions

Accruent's leasing software solutions are flexible enough to work and scale in any sector, including retail, corporate, healthcare, telecom, public sector, professional services, and more. Lx Contracts is a full-service lease administration software and lease accounting solution.

 Screenshot of Lucernex lease administration and accounting solution
Efficient lease accounting

Easily calculate your lease and expense obligations with a cloud-based, centralized source of truth for lease data. Additionally, enjoy user-friendly features that drive efficiency and lower the risk of human error, including:

  • Clickable lease abstracts
  • Operating lease, balance sheet, and lease term details
  • Configurable dashboards and other business intelligence tools
  • Mobile access on smartphones and tablets
  • Full internationalization (multi-currency and multi-lingual)
Screenshot of Accruent Lx Contracts
Automated adherence to the latest lease accounting standards

It can be difficult to comply with standards like ASC 842, IFRS 16, and GASB 87 - especially as these requirements continue to change over time. Lucernex has had a 100% success rate getting clients into compliance, which means you'll never risk a failed implementation.

Lucernex also provides audit logs that assist organizations leveraging the solution to achieve SOX compliance and it is SOC 1 and SOC 2 compliant.

Screenshot of Lucernex software showing accounting schedules
Comprehensive integrations and centralized data

Lucernex can integrate via flat file secure transfers or by REST API to a variety of systems to help you generate comprehensive insights. These include:

  • ERPs like Oracle and SAP
  • Accounting systems
  • CRMs
  • BI tools
  • Financial management systems
  • Human capital management systems
  • CMMS or FM solutions
Screenshot of Lx Contracts dashboard
Improved control and collaboration

Using tools like Excel or Google Sheets, it's easy to make mistakes and miss renewal dates, miscommunicate or fail to meet data requirements. The right lease accounting software will reduce this kind of user error, thereby facilitating compliance and reducing costs over time.

Using the right tool, you can also set permissions based on role, create alerts for key dates, and give all relevant personnel access to your lease portfolio and related documents.

Related Industries Served

Lease Accounting Software FAQ

What is the best lease accounting tool?

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

What is lease accounting software?

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.

Is software a lease under ASC 842?

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.

What are some of the most important features to look for?

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.