With the introduction of new lease standards by FASB and IASB, there is a significant change in the way lease accounting is done. Previously, operating leases were off the balance sheet and therefore accounting functionality was not a priority. But now, the transition to new lease accounting standards demands businesses to embrace new technology and solutions like lease accounting software as it is now risky to use spreadsheets.
Other than complying with the new lease standards, lease accounting software can help you attain additional benefits. Therefore, it is important to ensure you have the best lease software that serves the purpose and works as the right solution.
We have listed 5 things to look for in a lease accounting software so that you can make an informed decision.
Businesses must have a centralized lease database available in a single repository. This improves visibility and helps in quick tracking of important factors like key lease events, dates, value, modifications, etc.
While selecting the best lease accounting software, consider software solutions that cover FASB and IASB standards. The features should help in generating journal entries, amortization schedules, quantitative calculations, etc. Customized reporting options should be available for different types of leases.
Supports Existing and New Lease Standards
Many companies have upgraded lease management software to add lease accounting solutions. You should check if the software can be trusted to provide the right financial reports. Generally, auditing and testing are done that proves its authenticity and if it can be relied upon by businesses.
Moreover, make sure that the software supports existing as well as the new lease standards. The different teams like real estate, accounting, and IT teams would require features that meet existing standards.
Accuracy and User-friendly
Different lease accounting software have varied functionalities. You must check if it ensures calculation accuracy as it is one of the most important parts of lease accounting. Features that validate the entered data as correct is helpful.
A simple, easy, and user-friendly interface can make life easy for people handling and managing the lease data. The ability to navigate, discovery of items, and making reports should be easy and a top priority while choosing a lease accounting software.
There are financial and business implications that need to be analyzed after implementing the new lease accounting standards. Therefore, the insights at a glance feature will help understand what-if scenarios and other aspects for making better and effective decisions.
These are the top 5 things you need to look for in a lease accounting software. Plus, there are other factors like Pricing, Data Security, Accessibility, and Collaboration which you can analyze as per your business requirement. Once you complete the evaluation, make sure to ask about maintenance and support as well.
Yardi Corom Transaction Management is a simple and powerful lease accounting software from Yardi which will help businesses to overcome compliance challenges related to IFRS 16 and ASC 842 calculations. It is combined with lease management software which centralizes all data, critical date alerts, tailored reports, finding documents at one location, and much more.
For more details, visit www.yardicorom.com.