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Companies that lease commercial real estate office space, land, vehicles and equipment, like copy machines and computers, must navigate through numerous accounting tasks including payment tracking, critical dates expiring and the development and upkeep of financial reports. These lessees are also required to comply with the latest standards set by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). Adhering to these standards involves a sophisticated process fraught with complexities.
Lease accounting software plays an indispensable role for organizations in the business of leasing equipment and commercial properties. It simplifies the automation, surveillance, and management of all related accounting activities. Furthermore, such software guarantees adherence to the evolving standards of lease accounting.
For businesses engaged in equipment leasing and real estate rentals, leveraging lease accounting software can offer significant advantages. Nevertheless, when selecting the most suitable lease accounting software, it's critical to assess several key features to ensure it meets their specific needs. - A solid lease accounting software solution helps companies track and manage any leased asset's financial, legal, and operational elements, such as rental properties or equipment. The solution allows companies to manage and curate essential information such as maintenance dates, renewal dates, and expiry dates.
- Since one of the biggest headaches for most lease companies is collecting data and having systems that allow for centralization, a leasing accounting software solution should cover these areas. It should provide a central repository where companies can store lease data and other supporting documentation for efficient filtering, management, reporting, and compliance.
- The iLeasePro lease accounting solution boasts an advanced software infrastructure that allows real estate and lease equipment enterprises to build a comprehensive lease portfolio by collecting data in a centralized location. You can transfer and manage accounting lease data into the intuitive software system without filling out hundreds of forms.
- Compliance with set FASB and IASB standards is vital for any company dealing with property and equipment leases. Non-compliance can have catastrophic consequences for any business. Besides running into legal troubles, future partners and clients might base their assessment on what is reported on the balance sheet.
- A lease software solution should integrate advanced accounting functions to support ever-changing compliance standards such as IFRS 16, ASC 842, and GASB 87. The platform must be equipped to efficiently manage and accurately report lease liabilities and right-of-use assets, ensuring full compliance with the standards within the necessary timelines.
- iLeasePro is a perfect example of a lease accounting software solution that will help you visualize your lease data and help you identify whether you're compliant with the ASC 842 standards. It will help you pull past figures and compare them with current data to facilitate compliance with new standards.
- Companies that lease real estate or equipment must produce regular lease accounting reports. Finding an easy way to create and consolidate accounting reports can save your organization time and money.
- A lease accounting software solution should integrate advanced adhoc reporting features that take away the hassle of report creation and record management. With a lease accounting software system, you can consolidate lease data, such as salvage value and periodic depreciation from different business units or geographical locations, into a single report. Conversely, it allows you to pull integrated and detailed financial reports that display information at an asset-specific level.
- A lease accounting software solution such as iLeasePro facilitates the quick and efficient generation of accurate financial statements and accounting reports. Your business can produce different reports on demand since the data is already stored in the systems. All you need is to modify a few details and get any report with a button click.
- Managing a lease portfolio means that you have to remember particular key dates. Failure to recognize the lease option or rent review dates can have serious financial ramifications for the lease and the business. This is why it's imperative to have a system that keeps track of all these important dates.
- A lease accounting software solution should create and track critical dates for lease terminations, renewals, buyouts, and more. Furthermore, it should have customizable reminders and alerts to notify you when particular dates are due throughout the year. This feature is crucial for enterprises dealing with large lease portfolios.
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As a bare minimum, a reliable lease accounting software solution should have alerts and reminders for options like:
- Lease renewal
- Rent escalation
- Lease expiration
- Insurance policy expiration
- Lease buyout
- Market rent review
- Security remains a concern for all companies across the globe dealing with real estate rent and equipment leases. For this reason, lease account software solutions need to put security as their top priority. They need to provide robust security measures that guarantee that the company information doesn't fall into the wrong hands.
- Lease accounting software systems should have cutting-edge security features that guarantee safety. They should secure financial data and lease information with solid SSL encryption technology. The SSL technology encrypts data limiting access only to authorized personnel.
- The system should also keep regular backups on servers in purpose-built premises secured with robust firewalls. Conversely, many modern lease software systems are deployed on the cloud. Their data is secured with robust IT infrastructure and foul-proof security measures. Another added advantage of cloud storage is that information is accessible from anywhere.
- System and Organization Controls SOC Reports are crucial for ASC 842 software because they ensure that the software is secure and reliable. These reports provide an in-depth review of how the software manages and protects data, crucial for companies that need to comply with ASC 842 lease accounting standards. By having SOC Reports, businesses can trust that the software they're using to track and manage their leases is up to the highest standards for security and accuracy. This trust is essential, especially when dealing with the complex financial reporting required by ASC 842 standards, making SOC Reports an indispensable part of choosing the right lease accounting software.
- Robust lease accounting software solution should have a simple and user-friendly interface that allows easy navigation for all members of your workforce. It should provide intuitive tools that manage users, access, and permissions. It should also offer on-site training and support for complicated features that might be challenging for workers to decipher.
- The solution should easily integrate into the lease organization's system. It should support the migration of lease data from existing platforms into a single repository. Having valuable tools to hasten the process, such as migration templates, is an added advantage. A lease accounting software solution ought to offer Implementation support to make setting it up a breeze.
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Final Verdict
If you're shopping for the best lease accounting software solution for your company, it's always good to base your choice on the key features discussed in this article. Of course, different software solutions may have distinct features, but as a base minimum, they should integrate the features discussed above.
Now that you understand the most integral features of a lease accounting software solution, you'll agree that iLeasePro is a solid system. Besides being easy to set up and use, iLeasePro boasts asset management, compliance, and reporting features ideal for lease companies of different sizes. Furthermore, it employs vast security measures to guarantee the utmost data security.
Top Features of Lease Accounting Software Solution
Lease accounting solutions must integrate features that streamline data entry, reduce cost, ensure compliance, and foster collaboration. These features include:
Asset Management
Compliance with ASC 842 Standards and IFRS 16 Standards
Robust Reporting
Critical Date Reminders and Alerts
Security and Safety
System and Organization Controls SOC Reports
Ease of Use and Implementation
Ready To Begin?
Implementing the new standard requires plenty of work. Having a lease accounting software such as iLeasePro makes it easier to retrieve information on the existing leases and categorize them accordingly. You will benefit from features such as Lease Management, Lease Accounting, and Lease Analysis, among others. In addition, it is compliant with the New FASB ASC 842 Lease Accounting Standard.
iLeasePro lease accounting software is a robust solution that makes lease management and reporting a breeze. If you want to navigate the complexities of lease standard compliance with ease and have better data visualization, take a tour of iLeasePro to learn more.
Let iLeasePro Simplify Your Lease Accounting
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