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Accruent LX Contracts: Best Lease Accounting Software

Lease accounting software is a powerful tool for maintaining compliance with ASC 842, IFRS, GASB, and other financial reporting standards.

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What is Lease Accounting Software?

Lease accounting software is a specialized system designed to streamline and manage lease agreements in compliance with accounting standards such as ASC 842, IFRS 16, GASB 87, and GASB 96. Lease accounting software helps organize lease data, calculate financial obligations, generate reports, and ensure adherence to regulatory requirements. Accruent LX Contracts is a comprehensive lease accounting software specifically engineered for lease management and compliance. It streamlines lease data centralization, automates calculations, and facilitates financial reporting. LX Contracts offers features including lease abstraction, automated calculations, lease classification, financial reporting, and lease modification management. By aligning with lease accounting standards like ASC 842, IFRS 16, GASB 87, and GASB 96, Accruent LX Contracts supports businesses in effectively managing their lease portfolios.

 

Our Lease Accounting Software Helps You Maintain Compliance

What is Lease Accounting Software

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.

Lease accounting software review in Capterra of Accruent Lucernex Lx Contracts

Industries that Use Accruent Lease Accounting Software

Retailers today must run a tight ship to stay competitive. One way to save on valuable resources and achieve greater efficiency is by using the right lease accounting software. Accruent’s solution supports your retail business’s complex real estate and asset leases by consolidating data, creating end-to-end processes that ensure compliance, and driving optimum efficiency while maximizing profitability throughout the store lifecycle.

Managing hundreds to thousands of leases is not uncommon in corporate real estate. With information scattered in multiple disparate systems, managing them can be difficult and time-consuming, and lease information may be riddled with data discrepancies due to human error. Lease accounting software that is purpose-built and centralized can save your teams a ton of time and effort. And when you add in its automatic compliance capabilities, you can easily adhere to all current and upcoming lease accounting standards and regulations.

To keep your professional services running as efficiently as possible, you need to take advantage of any tool that can make a difference to the bottom line. Accruent’s lease accounting software can help propel your business to greater profitability by giving you complete control over your lease accounting and management, including its robust integrations with ERPs and CRMs, a centralized database, and automatic compliance capabilities.

Facing declining profit margins, healthcare facilities must look for greater efficiencies wherever and whenever they can. Effective management of equipment leases is one way to reverse this trend. It will save your organization time and resources with its ability to help your teams work smarter while upholding lease accounting standards. It also provides critical data security, including encryption, authentication, and dynamic application testing.

In order to stay compliant, telecom companies need to provide accurate reporting, including FASB and IASB lease calculations and schedules. The right lease accounting software can help your telecom company achieve compliance and effectively manage all other aspects of your real estate and equipment leases for increased operational excellence and business growth.

Ever since the GASB 87 lease accounting standard was established, governmental organizations need to make sure that all their i’s are dotted and t’s are crossed. Fortunately, your agency can rely on robust lease accounting software from Accruent that provides the functionalities needed to adhere to GASB 87 and other financial reporting standards.

Watch Customer Testimonials of Our Lease Accounting Software

Banfield Pet Hospital Streamlines Lease Accounting

Featuring Kendall Dukes, Senior Manager, Real Estate Processes and Lease Administration of Banfield Pet Hospital, find out how her team centralized lease data, connected accounting, and simplified lease information with Lx Contracts Lease Accounting Software. Specifically, how it helped her team become more productive and efficient by housing all lease data in one centralized location for easy access.

Lease Accounting Software FAQ

Is lease accounting difficult?

Lease accounting doesn’t have to be difficult — as long as you are using configurable lease accounting software. Full-service lease accounting solutions that are flexible enough to work and scale in your specific sector ― retail, corporate, healthcare, telecom, public sector, professional services, construction companies, and more ― make it easy to monitor your full lease portfolio, perform financial calculations, recognize assets and liabilities on balance sheets, and meet compliance regulations.  

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 ASC 842 software?

ASC 842 software is lease software that provides the functionalities needed to maintain compliance with FASB’s ASC 842 financial reporting standard. Lease accounting software ASC 842 closes the loophole that lets companies hide assets off their balance sheet, and it requires the disclosure of all a company's leased assets.

This is important because 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 the features of lease accounting software?

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 the cost of lease accounting software includes updates and enhancements

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.

What is the new accounting standard for leases?

The new accounting standard for leases is ASC 842 in the United States, which mandates the inclusion of most lease arrangements on the balance sheet. This means recognizing a lease liability and a right-of-use asset, aiming to provide a more accurate financial representation. Fortunately, Accruent LX Contracts is a lease management software solution designed to assist organizations in complying with ASC 842 as well as other international lease accounting standards.

What is the difference between ASC 842 and 840 lease accounting?

The key difference between ASC 842 and ASC 840 lease accounting lies in how leases are reported on financial statements. Under ASC 840, many operating leases were kept off the balance sheet, leading to potential inaccuracies and reduced transparency in financial reporting. In contrast, ASC 842 requires most leases, including operating leases, to be recognized on the balance sheet. This means lessees must record both a lease liability and a corresponding right-of-use asset, providing a more accurate representation of a company's financial position. The transition to ASC 842 aims to enhance transparency, aligning lease accounting practices with a focus on economic reality and improving the consistency and comparability of financial statements.

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