Using lease accounting software is of paramount importance, primarily for entities dealing with property rental and equipment. There are a plethora of accounting processes like generating invoices, tracking payments, and creating and maintaining financial reports.
Moreover, companies need to comply with new standards released by IASB and FASB. The compliance process involves many challenges, and one of them is complex calculations. A lease accounting software solution makes the process easy. In the long run, it will help companies in complying even when standards change.
Lease accounting software can be used as a single repository for lease data. This, in turn, helps in keeping track of events such as payments, renewal dates, updated lease terms, and much more.
Two of the predominant standards today are FASB ASC 842 and IFRS 16. A lease accounting software will assist you with reporting existing as well as new leases correctly in sync with the new standards.
Transactions can be recorded based on portfolio-level or asset-level using lease management software. In the former, transactions are reported as complete for a single lease contract. It is helpful for those leases which have one asset per contract. While in the latter, every single asset present in the contract is accounted for in the asset-level lease. The best example is the one-lease contract under which a number of offices are considered in a building.
The new standards of ASC and IFRS ask every asset under lease contract to be made available in financial statements. Hence, a lease accounting software will make this process easy.
Businesses dealing with real estate and equipment leases can benefit immensely using lease accounting software. It can help in keeping a record of income from rentals, lease agreements containing terms and conditions, modifications, etc. Additionally, it will notify you of critical events such as payment overdue, cancellation of contracts, renewal dates and much more.
Besides, lease management software can be used for both commercial as well as residential real estate lease accounting. It can be used to find important data in one place, get performance insights and create customized reports.
Another key feature of lease accounting software is that it assists in better data visualization. Data analysis is key to good decision-making. Therefore, visualization in reporting helps convey the data and its interpretation to all stakeholders in a cohesive manner. A comprehensive range of options like graphs, easy clicks, and inclusion of minute details makes the numbers more meaningful and the intention behind them with much clarity.
You can share critical data and insights with your team to build better financial strategies using a lease accounting solution. Extensive customization options help in configuring reports in just the way you want them. It will also help accounting teams as well as other members of the department in a corporate set-up.
Yardi Corom’s lease accounting software is an end-to-end accounting software as well. Hence, businesses can utilize it as a general ledger or a sub-ledger for real estate lease portfolio. In this way, businesses can develop and port journal entries and record, track financial activities easily. These are some of the major benefits of using lease accounting software for financial reporting.
Yardi Corom is one the best lease accounting and management software which helps in making financial reporting easy and hassle-free. For more details, visit www.yardicorom.com.