Stay Informed
iLeasePro Newsletter

Expert Knowledge to Your Inbox - SignUp Now!

Trends Shaping the Future of Lease Accounting & Management

trends in lease accounting

The world of lease accounting and management is ever-evolving, with innovative approaches surfacing to match the shifting economic landscape. Understanding these trends is essential for entities dealing with leases, especially with the implementation of standards like ASC 842, GASB 87, GASB 96 and IFRS 16  that have fundamentally changed lease accounting.

One of the most pronounced trends is the increased adoption of lease accounting software. In the era of digital transformation, companies are realizing the potential of software solutions to automate lease accounting processes, thereby reducing the risk of human error and ensuring compliance. These software systems not only offer streamlined operations but also provide data-driven insights that can be utilized for strategic decision-making.

The rise of AI and machine learning is another notable trend, providing significant opportunities for automation and data analysis in lease management. Through the application of AI algorithms, companies can automate the extraction of key terms from lease contracts, assess risk, and even forecast future financial implications. This provides both cost savings and increased accuracy, highlighting AI's transformative potential in lease accounting.

Furthermore, as sustainability efforts gain momentum globally, green leasing is on the rise. These leases include clauses that encourage environmentally friendly practices, like energy efficiency and reduced emissions. As companies seek to demonstrate their commitment to sustainability, they are turning to green leases as a tangible step towards their ESG goals.

Finally, the ongoing effects of the COVID-19 pandemic are reshaping lease accounting and management. The shift towards remote working has triggered a reassessment of real estate portfolios, with many companies opting for flexible leases to manage uncertainties. This introduces new complexities in lease accounting, emphasizing the need for dynamic lease management strategies.

In conclusion, the future of lease accounting and management will be shaped by digital transformation, environmental sustainability, and the evolving work landscape. Companies will need to adapt to these changes to ensure they remain compliant and make the most out of their leasing arrangements. Keeping abreast with these trends is not just a necessity, but a strategic move that could have a profound impact on a company's bottom line.




Related: iLeasePro Free Trial, iLeaseXpress, iLeaseXpress Unlimited, ASC 842 Financial Reporting, ASC 842 Balance Sheet Reporting, ASC 842 Income Statement Reporting, ASC 842 Cash Flow Reporting, ASC 842 Statement of Shareholder Equity, ASC 842 Disclosure Notes, ASC 842 Management Discussion, ASC 842 Comprehensive Income, ASC 842 Glossary of Terms, ASC 842 Journal Entries, ASC 842 Software, When Is the ASC 842 Compliance Date, FASB Lease Accounting Software, Understanding the New FASB ASC 842 Lease Accounting Standard, How Does a Lease Balance Sheet Change After the New Standard?, Tracking Lease Details After ASC 842, Deferred Rent Explained Under the ASC 842, Guide to Lease Classification, Overview of Relevant Borrowing Rate, ASC 842 Footnote Disclosure, Lease Accounting, What Does Lease Accounting Software Do?, Key Features of A Lease Accounting Software, How to Never Miss Important Lease Dates, Scaling Your Lease Accounting Software to Your Business Needs, How to Select the Right Lease Solution, How to Set Up Lease Accounting Software, What is the Best Lease Accounting Software?, Overview of the Types of Leases, Equipment Lease Software, How the Right Lease Management Software Makes Equipment Leases Easier, Lease Tracking Software, How The Right Software Can Help You Manage Lease Data, Five Benefits of a SaaS Lease Management Solution, A Centralized Lease Portfolio Making Asset Management Easier, Lease Analysis 101, Lease Analysis: The Financial Metrics, Lease Abstraction, The Importance of Lease Abstraction for Lessees, The Lease Data an Abstract Should Include, What Software Do I Need for Lease Abstracting?, Navigating The ASC 842 Accounting Audit, Ultimate Lease Accounting Audit Checklist, Essential Guide To Engaging Auditors, Leveraging AI for Enhanced Year-End Audits Transitioning to the ASC 842 Standard Lease Document Management ASC 842 Short-Term Leases Practical Expedients Lease Modifications & Remeasurements Lease Variable Payments Embedded Leases Monitoring Critical Lease Dates Transportation - Navigate the ASC 842 The Impact of the ASC 842 on Regulatory Policies in Lease Management & Lease Accounting Integrating Lease Accounting into Your Month-End Closing Process The Modified Retrospective Approach in ASC 842 Determining the Incremental Borrowing Rate